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The New Brunswick Apartment Owners Association (NBAOA) is extremely pleased that the government has addressed the inequity in the property tax system as it relates to double taxation of tenants in their discussion paper.

The New Brunswick government collects the highest provincial property taxes in the country on non-owner-occupied premises. That tax is paid for by New Brunswick residents who can least afford it — the tenants.

Statistics Canada reports that the average renter earns 40 per cent less than the average homeowner, yet the renter's tax burden is twice that of the average homeowner and of renters living in the rest of Canada. New Brunswick tenants have absolutely no choice in this matter. They must have a place to live and consequently they must pay this tax, which is built into their rent. This tax policy contributes directly to the lower standard of living for the tenant.

The discussion paper recently released by the government shows the government has finally recognized this unfairness.

It states, "The existing differential property tax treatment of owner-occupied residential and non-owner-occupied residential properties creates an imbalance in the overall property tax system. Owner-occupied properties effectively pay no provincial property taxes, while non-owner occupied residential properties pay both provincial and municipal/local property taxes. The option of eliminating the provincial residential rate would remove the tax differential that currently exists and would address a number of concerns that currently exists."

The New Brunswick Government's property tax policy is a significant contributor to the lack of affordable housing. The affordable housing issue is a recognized problem in our province and the Government must look at themselves as a contributor to the situation if they are going to help solve it.

Housing is a fundamental need of every person in New Brunswick. Every resident in New Brunswick is entitled to the residential provincial tax credit on their primary residence, with the exception of renters, which makes it impossible for them to have the same standard of living as their peers who are not taxed in the same way.

Approximately one third of New Brunswick residents are tenants renting their living accommodations. This equates to about 250,000 people who are waiting for our government to take action on this issue to correct the unfair tax burden which falls on their shoulders month in, month out; year in, year out.

The New Brunswick Association of Apartment Owners wants the unfair tax burden to be put back in the pockets of the tenants. The association is fully prepared to work with the Province of New Brunswick to make this happen.

These points were raised in a meeting with Premier Shawn Graham and Minister of Finance Victor Boudreau recently. We were told that we should not expect a change in the 2007 budget, but that the minister of finance would review this issue further. We are encouraged their study has formally acknowledged the unfairness and we certainly hope the tenants of New Brunswick will finally see a change in this unfair tax policy very soon.

Contacts for the New Brunswick Apartment Owners Association are as follows:

Allan McGathey is president of the Fredericton Apartment Owners Association.

Willy Scholten us a spokesman for the New Brunswick Apartment Owners Association.