Friday, 21 April 2017

Categories of Property Tax in LSDs 

Current Property Tax in Local Service Districts (LSDs) 

Under the current property tax structure in New Brunswick, properties located in LSDs are taxed in the following manner: 

Owner-occupied residential properties (homes) located in LSDs are subject to a special provincial levy of $0.6315 per $100 of assessment. This rate is applied to help cover the cost of local services, such as policing and roads that are provided by the Province in these communities. Just like cities, towns and villages, owner-occupied residential properties (homes) in LSDs are eligible for a provincial tax credit, known as the Provincial Residential Property Tax Credit, and have a provincial property tax rate of zero. 

Non-owner-occupied residential properties (apartments, cottages, second homes and farm land) are subject to a provincial property tax rate of $1.4573 per $100 of assessment. 

Residential property types described above (both owner-occupied and non-owner occupied) are also subject to local property tax rates. Local property tax rates are established to finance local services, such as fire protection, and solid waste collection and disposal. 

Non-residential properties (businesses) are currently taxed at a provincial property tax rate of $2.1860 per $100 of assessment. 
Local non-residential property tax rates also apply and are fixed at 1.5 times the corresponding residential rate. The total tax that business properties pay in LSDs is roughly 2.9 times the total property tax that owner-occupied properties in LSDs pay.

Improving New Brunswick’s property tax system: A white paper Published in 2012 by: NB Department of Finance

Green Hill Lake in Bright LSD

No comments: