Discard Saint John’s tax myth
Deputy Mayor Stephen Chase had a great article in this weekends Telegraph-Journal on property taxes, check it out:
This week homeowners in New Brunswick were delivered their pre-Easter presents – only it wasn’t the Easter Bunny bringing colorful and tasty delights, but rather the tax man and his grim property tax bills. This certainly has made many people grumpy. Saint John Common Council decided to hold the tax rate despite a growing chorus of discontent from the citizens that their property taxes are too high, and despite the tax accountability measure issued by the provincial government, which recommended that the tax rate be dropped by about 5 cents.
Stephen Chase walks uptown with the Saint John Arts Centre in the background. Deputy Mayor Chase dismisses the idea that Saint John homeowners carry a lower tax burden than residents of municipalities where property values are higher. He says the city’s high tax rate and rising property tax assessments are putting pressure on families in a community where the average household income is relatively low.
I did not support holding the tax rate because I believe the tax rate is too high and that combined with rising property tax assessments, the tax bill is becoming unwieldy for many homeowners. One argument used to support not lowering the tax rate is that Saint John’s tax burden is the lowest in the province. The argument is meant to say that on a household basis, the tax bill is lower than elsewhere because of lower property assessment values.This is a false argument.
I offer two points that support my assertion.
While historically Saint John’s property assessments may have been low, the times are changing. Property assessments are increasing and mostly evident in newer construction. To illustrate, I will compare two similar properties in Saint John and Fredericton.
A newly built semi-detached home on Downsview Drive in Saint John is currently on the market for $188,000. It is assessed at $173,600 and has a tax bill of $3,098.
In a comparable neighbourhood in Fredericton, a newly built semi-detached on Canada Street is on the market for $189,900. It is assessed at $156,700 and has a tax bill of $2,265.
The difference in the tax bill between the two properties is $833 in favour of the Fredericton property.
The Saint John property, with only a marginal edge on property assessment of 10 per cent over the Fredericton property, pays a tax bill 27 per cent higher. Hardly a lower tax burden.
Secondly, the tax burden must be considered relative to the individual household wealth in the community. Based on the latest census data, let’s consider the income levels in Saint John:
The medium household income for all family type households in Saint John is $51,042. In Fredericton, it is $60,705. In Moncton, it is $56,292. The medium household income for married couple households is $63,053 in Saint John, $72,382 in Fredericton and $67,281 in Moncton.
This data indicates that the City of Saint John has lower household income than either Fredericton or Moncton. What this means is that even though a property may have a lower tax bill than a comparable property in Moncton or Fredericton, the lower household income wipes out any notion of a lesser tax burden. In fact, with rising property assessments and weighed down by Saint John’s high tax rate, the tax burden on Saint John households could be the greatest in the province.
The argument that Saint John can justify a high tax rate because the overall tax burden is comparably lower than other cities in New Brunswick is no longer tenable. Growth and prosperity in Saint John will require a tax rate that is competitive to other municipalities. This will attract home buyers and new construction – both of which are required for sustainability.
Stephen Chase is deputy mayor of Saint John, elected at large by voters across the city’s ward constituencies.

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