If there were to be a real property assessment freeze or cap in New Brunswick, what might the rules look like?

First, don't expect that it will apply to any type of commercial or industrial property.

And it surely wouldn't apply to non residents of New Brunswick.

Next, don't expect that it would apply to recreational, seasonal, and secondary properties like camps or cottages.

Of course the assessment for a newly constructed home could not be frozen until after it is assessed for the first time. An unwanted side effect of this could place new houses at an assessment / property tax disadvantage compared to existing houses.

Then don't expect that it will apply to any type of residential rental property. This leaves out landlords (both for profit and not for profit) and by extension their tenants. Approximately one third of New Brunswick households rent.

The remaining 66% of New Brunswick households might benefit from a freeze or cap. However who benefits most from an assessment freeze or cap? The New Brunswick household living in a modest bungalow assessed at $125,000 or the one living in executive two story assessed at $250,000? The real beneficiaries of an assessment freeze or cap will be the 33% of New Brunswick households that own their principal residence which is assessed above the median assessment value.

And what about renovations? Will the real property assessment still be frozen or capped if a major home renovation is carried out? Or will renovations trigger a re-assessment? Will this encourage the underground economy in home renovations?

And what about if the current owner sells? Will the "frozen" assessment be transferred to the new owner? Not likely. The real property assessment would then be brought up to date. Will the "frozen" assessment be transferred with the current household? What if the household is dissolved? Who would benefit from transferable frozen assessment?

Picture this. For whatever reason a homeowner wished to downsize. They want to sell the big home and get into a smaller, less expensive one. But guess what. Doing this may negate the "freeze" the homeowner has enjoyed. The property taxes on the smaller home could be more than the current taxes on the larger home.

First time homeowners and new house buyer would pay more property taxes than long time homeowners. Anyone who relocates, either within New Brunswick or into New Brunswick or would be subject to higher real property assessments and property taxes.

And what about the day when the freeze ends? Will real property assessments be returned to "real and true value"? Will everybody be happy with a sudden dose of reality?

And speaking of reality. Even if assessments are frozen, what if municipal spending still goes up? Let's say because of higher energy costs like fuel and electricity. The real property tax rate will have to go up to compensate. So what's the point of an assessment freeze if property taxes may have to go up anyway?

Does a real property assessment cap or freeze really make sense?