Request for Expressions of Interest:
New Brunswick Property Tax and Assessment Reform Study
The Union of Municipalities of New Brunswick and l’Association francophone des municipalités du Nouveau-Brunswick are partnering to commission a study examining the policy implications and potential financial impacts of changes to New Brunswick’s property assessment and taxation system. This project will produce a position paper with expert analysis, modelling and projections, and recommendations regarding all aspects of potential changes relating to the assessment system, taxation categories and mechanisms, revenue division between the province and local governments, implications of municipal dependence on property taxes, and impacts of taxation policy on household affordability.
The resulting municipal position paper will inform the positions of UMNB and AFMNB as we engage our members and provide key information to use in public communications about property tax reform. Because property tax reform is a complex policy area with wide-ranging implications for local governments, collaboration between municipal staff, elected officials, and subject matter experts is needed to guide the process.
The expert-consultant will be the primary author of the report, with a municipal association committee and staff providing assistance and oversight. At least one interim report will be provided for feedback. The final document will be developed in consultation with UMNB and AFMNB and the services of a professional graphic designer will be engaged in order to format the report and prepare it for publication in English and French.
The project will begin in May 2025, with the position paper provided in September 2025.
Background
New Brunswick Premier Susan Holt campaigned on a promise to reform New Brunswick’s property tax and assessment system and in October 2024, Aaron Kennedy was named Minister of Local Government and Minister Responsible for Service New Brunswick. The Minister’s mandate letter includes a directive to “overhaul property tax to ensure stability and fairness.”
This mandate coincides with changes currently being implemented to create a new fiscal framework for provincial funding of municipalities as a result of local governance reforms in 2023. In a 2024 Memorandum of Understanding on Municipal Fiscal Reform, AFMNB and UMNB agreed that the property assessment system reforms must ensure fair and updated property valuations, lessen the financial burden on residential ratepayers, and create the financial autonomy required for local governments to provide the necessary services and infrastructure in their communities.
Although some progress is being made on municipal funding, any upcoming changes to the provincial assessment and taxation system will have fundamental implications for local governments, which have been expanded significantly and are now financially responsible for larger mandates administered by regional service commissions. In New Brunswick, property taxes account for, on average, 85% of total municipal funding each year, meaning that changes to property assessment and taxation will be significant in every municipality.
In May 2025, the provincial government announced a one-year freeze on assessments for taxation while further reforms of the property tax and assessment system are under examination. This decision underscores the urgency of understanding how legislative and regulatory reforms could affect municipalities with varying rates of property tax dependency.
About the UMNB
The Union of Municipalities of New Brunswick (UMNB) is a bilingual association comprising sixty local governments of various sizes, collectively representing over eighty percent of New Brunswick’s population. For three decades UMNB has been a dedicated advocate for the creation of strong, sustainable communities throughout the province.
At UMNB, we actively engage and collaborate with all New Brunswick municipalities, working towards building vibrant and sustainable communities through advocacy and the provision of valuable services for our members. Our organization is committed to being member-driven, serving as both the voice and authority of municipalities in New Brunswick and striving to ensure effective representation and support for our diverse membership.
Our members actively shape UMNB’s policies and priorities through member resolutions, at regional Zone meetings, and during our Annual General Meeting. This collaborative decision-making process empowers our members to address local challenges and share effective solutions, ultimately enhancing the quality of life for their citizens.
In 2024, the Union of Municipalities of New Brunswick successfully amalgamated with the Cities of New Brunswick Association, uniting as a practical response to concerns stemming from the provincial government’s mandated municipal reform process. This amalgamation strengthens our ability to present a united front and address challenges collectively.
About the AFMNB
The Association francophone des municipalités du Nouveau-Brunswick (AFMNB) brings together 30 French-speaking and bilingual municipalities spread across six major regions stretching from the northwest to the southeast of the province. Our member municipalities represent nearly 389,000 people, or nearly half of New Brunswick’s population.
Since its creation in 1989, the AFMNB has represented and supported strong local governance in order to promote the development of innovative, prosperous, united, and sustainable communities and to contribute to the vitality of the Francophonie.
The municipalities in the regions where the AFMNB operates represent the entire population of these regions. They are legally recognized as a government level in their own right with their own areas of jurisdiction and are a leading force in the social, cultural, and economic development of New Brunswick’s Acadian/Francophone community, while contributing to the community’s influence on the national and international scene.
Project Outline
The resulting municipal position paper will inform the positions of UMNB and AFMNB as we engage our members and provide key information to use in our advocacy related to property tax and assessment reform.
The Municipal Steering Committee will be led by association staff and work in close collaboration with the expert-consultant. The committee’s role is to gather input and help refine key questions around potential policy changes to inform the research and recommendations.
Areas of examination might include:
Areas of Examination
- Division of the property tax revenue field – provincial vs. municipal property tax and implications of any changes in which levels of government receive the revenue (for example, industrial taxation revenue shifting to municipalities, reduction or elimination of provincial non-owner occupied taxes, etc). Changes in this category will affect local fiscal capacity and equalization calculations.
- The assessment system – examining how changes in the frequency of assessment or the rules of the assessment process would impact residents and local governments.
- Taxation in former Local Service Districts that are now part of local governments (Farm Land Identification Program, 0.4115 rural road levy, impacts on the Provincial Policing Services Agreement billing formula, etc).
- Potential implications of changes to taxation categories and mechanisms (additional tax classes, vacant land tax, changes to multiplier rates and mechanisms, Spike Protection Mechanism, Regional Service Commission funding formulas, exemption categories).
- Comparison of how dependence on property taxation varies among local governments in the province, and how reforms might affect groups of municipalities according to size, geography, level of service etc.
- Applying an affordability lens to taxation of housing and household affordability (what are the policy options and the benefits/drawbacks of each). Propose alternatives to the current system, for example, examine the possibility of reducing the property tax rate and generating the same revenue via the income tax.
Following the completion of the report, the expert-consultant will be invited to present the work in briefings to government officials and at the annual conferences of the UMNB and AFMNB.
Timelines and Delivery
|
Date |
Action |
|
May |
Project is announced and open to Expressions of Interest |
|
June 2nd |
Proposals are received and the expert-consultant is selected |
|
June |
Municipal Association Committee meets with expert-consultant |
|
June |
Data analysis begins |
|
July |
First draft of models and recommendations |
|
August |
Finalizing the analysis, models, and recommendations |
|
September 8th |
Provide final draft for feedback |
|
September 15th |
Position Paper is translated, formatted |
|
September 26th |
Position paper is ready for presentation |
Goals and Current Roadblocks
This is a comprehensive project that will contribute an evidence-based and solution-focused document to the public understanding of property tax and assessment reform. The main challenge will be assembling the data necessary to complete the modelling; however, the municipal partners have already begun collecting relevant documents and will assist as needed in this process. The timelines are quite firm due to the provincial government’s urgency on this file.
Budget
A flat fee of 30,000 CAD + HST will be paid to the consultant, payable in three installments.
Additional amounts are allocated to travel and professional services (data entry/preparation assistance). These amounts should be discussed prior to disbursement and will be approved at the discretion of the partners.
Submission Requirements
The partners invite qualified individuals and professional firms to apply. The EOI should include a letter outlining your professional approach to each of the sections in the project outline, and any additional relevant project experience in your background. Please include a description of your familiarity with the necessary data sources for this project, as well as your knowledge regarding evolution of municipal financial reform in New Brunswick. We welcome your feedback on the process outlined in this document.
The submission should outline any barriers to your availability during the project timeframe that might affect your ability to complete the project before September 8th, 2025. As a courtesy, we ask that each applicant provide one reference from a prior project of a comparable nature.
All submissions should be sent via email to Dan Murphy (dan.murphy@umnb.ca) no later than Monday, June 2nd, 2025.