The New Brunswick government anticipates municipalities will manage a property assessment freeze in 2026 without raising property taxes. However, this may be challenging based on current municipal budget figures. Aaron Kennedy, the Minister of Local Government and Minister responsible for Service New Brunswick, suggests municipalities can rely on revenue from sales, new construction, and major renovations, along with making difficult spending decisions.
Saint John Mayor Donna Reardon expressed concerns about fixed financial obligations, including negotiated wage increases for unionized employees. These obligations cannot be easily managed without revenue growth. A similar freeze in 2025 would have created significant budgetary problems for Saint John.
Saint John experienced a $2 million increase in tax revenue from new construction in 2025. However, this falls short of financing a $6.8 million increase in municipal expenditures and a $2.6 million reduction in the city's tax rate in the 2025 budget. The city would have needed to implement higher tax rates and service cuts totaling $7 million or more to balance the budget under a freeze in 2025.
Kennedy stated that a $63 million increase in provincial funding to local governments should help mitigate the impact of the assessment freeze. Decisions on the allocation of these funds to each municipality will be made later. In 2018, during New Brunswick's previous assessment freeze, 41 communities raised tax rates to finance their budgets.
The Union of Municipalities of New Brunswick (UMNB) and the Association francophone des municipalités du Nouveau-Brunswick (AFMNB) have criticized the freeze, stating that this unilateral move breaks a commitment to municipalities and sets a troubling precedent for interference in municipal finances.
The province is also planning to expand eligibility for the equalized payment plan, allowing more property owners to pay their annual property tax in 12 equal monthly installments without penalty.