Property tax bills are in the mail with homeowners facing the largest increases in N.B.

Kirby Burditt lives in a modest house on Saint John's west side that he has owned for 17 years, and he isn't looking forward to receiving this year's property tax bill, which is to be mailed out by the province today.

"Any little extra really takes the bite out of you," said Burditt. "You're always in a slump and it keeps you in a slump."

Like many in his neighbourhood, Burditt received notice of a 46 per cent jump in the assessment of his house in January.

He knows that means his tax bill is now on a schedule to jump by as much as $900 over the next four years, beginning with what will likely be a $180 increase on this year's bill.

"It will make a difference," said Burditt, who works at a job that pays $21 an hour.

"I don't drink, I don't smoke, I don't gamble. I haven't been away for one night in 14 years. I just don't have the money. Even when you're trying to live sensibly, it just costs a fortune."

Burditt's tax bill is one of more than 460,000 scheduled to be issued to property owners across New Brunswick today. 

Combined they will raise more than $1.5 billion for local governments and the province to help finance operations for the coming year.

Larger tax assessments came last year

Last fall, the province announced that assessed property values in New Brunswick had risen by $8.4 billion during the past year to a record $89.4 billion.  

Most of that increase has been on residential properties caused by rapid population growth and sudden high demand for housing in New Brunswick. It's a combination that ensures tax bills will be jumping over last year, even with efforts to minimize amounts.

The province requires large assessment increases to be phased in at a maximum rate of 10 per cent per year, and multiple municipal governments have been trying to offset increases with tax rate cuts, but neither is enough to keep bills from rising.

In Saint John, city council has dropped the residential tax rate for three years in a row, including by 2.4 per cent this year. But with a homeowner like Burditt dealing with a 46 per cent assessment increase, including 10 per cent that is taxable this year, what he pays will rise more than seven per cent.   

He then faces a 10 per cent increase in each of the three following years.

Saint John Mayor Donna Reardon said she expects to hear from unhappy city residents in the days ahead and understands why.

"There is a sting in a bill when you get it and those are big bills," said Reardon. "So yes, we probably will hear from people"

City frustrated it can't change rates

Saint John was frustrated this year by not being allowed to direct larger tax cuts at residential property owners by reducing rate cuts to industrial properties because provincial tax rules forbid it.  

Industrial properties in Saint John had to be given the same 2.4 per cent tax rate reduction residential properties received, even though as a group their assessments increased little and the reduction meant they would pay the city less in 2024 than last year.

Saint John wrote a letter to the province asking for more authority to adjust its tax rates for residential, commercial and industrial properties independently of one another.

Saint John finance commissioner Kevin Fudge explained to city councillors that most Canadian municipalities have much more control over property tax issues.

"We would really like to have no restrictions and set what we want to set," Fudge told councillors at a budget meeting in November.

"We would like the ability to set as many classes as we want and set the rates the way we want, based on what works for the City of Saint John."

Nevertheless, Saint John homeowners are better off than many.

In Moncton, the residential tax rate has dropped just 1.5 per cent this year; in Fredericton it is down less than one per cent; and in communities like Edmundston, it has not changed at all.   

That means residential property owners dealing with a full 10 per cent increase in their taxable assessment will see even higher increases than Saint John residents do when tax bills begin arriving in the next few days.