March 2, 2026

Ginette Gautreau
Director, Public Engagement
Executive Council Office
Government of New Brunswick 675 Chancery Place, Suite 1000
Fredericton, NB
E3B 1C2

VIA E-Mail

RE: Property Tax Reform Feedback

Dear Director Gautreau:

On behalf of The Coalition of New Brunswick Employers and our member associations from across New Brunswick, we are writing to voice our opinion regarding the existing property tax reform initiative.

The Coalition of New Brunswick Employers is a provincial advocacy coalition that represents various business, trade and industry associations in New Brunswick that overall represent nearly 300,000 hard working employees in the province.

We are committed to partnering with the Government of New Brunswick on property tax reform, offering insight and support to help shape a fair, sustainable and competitive system, however, we are also writing to share some concerns. We recognize the importance and timeliness of this initiative and wish to offer our assistance in ensuring the process leads to sustainable outcomes for all New Brunswickers.

Our members have supported the reform options and measures to date; however we are very concerned the review requires further consultation. Notwithstanding the process started formally in March of 2025, various stakeholders including ourselves were give a very short period of time to react to various initiatives proposed to us and others on February 19, 2026 in Fredericton.
To that end, a more comprehensive business review would provide a structured forum for industry stakeholders to share insights, raise concerns, and contribute to the development of a property tax system that supports economic growth and competitiveness. This will be a testament to the value of inclusive, consultative policy development.

To be more specific as it relates to the Phase 1 (2026) and Phase 2 (2027 onward) proposed reforms as outlined in our recent meeting, we recommend the following:

• First, we recommend moving Heavy Industry Revenue Transfer from Phase 2 to Phase 1. Industry associations have publicly endorsed this action for years as it is an immediate win for the New Brunswick municipalities that need it the most, right now. The dollar amount that it represents is small compared to the overall revenue that GNB receives, therefore returning it in part is a win / win for all the governments involved and certainly takes off the financial pressure at the municipal level.
• Second, we recommend moving Local Rate Flexibility / Guardrails from Phase 1 to Phase 2. This initiative requires extensive consultation as it is part of the larger conversation regarding competitiveness. With the current system of a multiplier with an industrial rate of 1.4 – 1.7 the residential rate, this current system is already at the high end of flexibility as most municipalities are already charging the maximum rate. Adjusting this rate higher without proper study and stakeholder engagement would result in increased costs at a time when business can least afford it. We continue to have extreme cost pressure in our business community and for those of us who live and work in New Brunswick.
• Third, we recommend moving the Vacant Property Levy from Phase 1 to Phase 2. Such a levy needs to be researched fully to determine the value add to areas with no development or pressure by the market. Clearly we have not had either enough information (or time) provided in which to make an informed decision.

We are seeking your support on these requests of the provincial government.

Thank you for your attention to this important matter. We are confident that our members’ diverse perspectives can add valuable insight to this important initiative and would welcome the opportunity to meet with you to discuss this proposal further to ensure a prosperous future for New Brunswick.

Sincerely,
Ron Marcolin
Chair,
Coalition of New Brunswick Employers
Coalition