New Brunswick-based small business owners have petitioned against the government’s commitment to grant additional tax powers to municipalities and eliminate the fixed multiplier for commercial properties.
The Canadian Federation of Independent Business collected over 2,100 signed petitions addressed to local government minister Aaron Kennedy in the past year. The government had committed to these actions during the election cycle.
“The ongoing consultations and the potential introduction of property tax reforms that will increase costs for small businesses in the next legislative session are a serious concern. The impacts of the last round of property tax changes are still being felt directly by small firms,” said Louis‑Philippe Gauthier, CFIB’s vice president, Atlantic, in a statement.
The long-standing 1.5 fixed commercial property tax multiplier was changed to a variable 1.4-1.7 range during the previous government municipal reform, permitting municipalities to establish independent rates. Thus, 67 percent of municipalities boosted their multipliers to over 1.5, while 51 percent set the highest multiplier of 1.7.
“Past behaviour is unfortunately a strong indicator of what’s to come. If the provincial government grants municipalities new taxation powers experience tells us they will turn to small businesses, rather than show the restraint they reserve for residential property owners,” Gauthier said in a statement.
CFIB is petitioning the provincial government to maintain a fixed multiplier for commercial properties and change laws to set 1.5 as the highest commercial multiplier. It also urged the government to craft a plan through which the multiplier drops to 1.0 eventually.
Moreover, CFIB members urged New Brunswick to enact a four-year plan that reduces the provincial property tax rate to match that of Nova Scotia. The goal is to completely vacate provincial property taxation as in Newfoundland and Labrador.
Gauthier said the business sector had contributed billions in property tax revenue, in contrast to primary residences, for over five decades.