You finally received the property assessment notice in your mail as a first-time home buyer. Don’t worry. You are not alone(wink). As a first-time homebuyer in New Brunswick, receiving your property tax notice can prompt a range of emotions, from excitement to apprehension. It marks a significant step in your journey as a homeowner, but it also introduces a new responsibility: managing property taxes.
Note that as at the time of reading this, you should have received the first and the second letter – Real Property Tax Notice. The first letter Property Assessment Notice was to notify you that your property has been assessed and the value as at January 1st stated on the document. Most People got theirs in January/February and had noticeable increases. You had thirty days from when you received this letter to appeal.
The second letter – Real Property Tax Notice starts coming in by late February/Early March of the tax year. This contains exactly what you are to pay, timelines for payments, options and contact details should you require more information.
Receiving your first tax notice signifies not only the joy of homeownership but also the responsibility of managing property taxes. Fortunately, there are several proactive steps you can take to navigate this process effectively and potentially reduce your property tax burden.
Review the Notice: Obviously the first step to take is to try to understand the document. No matter how complicated it looks, remember time and effort has been put into the document to make it as easy to understand as possible. Carefully review the property tax notice. Check for accuracy in the property assessment and the tax amount owed. Mistakes in assessment could result in higher taxes, so it’s crucial to address any discrepancies promptly.
Should you find it difficult to understand the document, do not hesitate to contact your REALTOR®, Property assessor and property lawyers for clarification. Importantly, the first place to go would always be the source of the document – the provincial government’s office. Do not forget to read till the end for useful resources.
Understand Payment Options: Familiarize yourself with the payment options available. In New Brunswick, property taxes are typically due annually or semi-annually. You may have the option to pay in full or through installments. Choose the option that best fits your financial situation. EPP (Tax Equalized Payment Plan) assist eligible homeowners make equal monthly payment throughout the year. You can set this up with Service New Brunswick or with your mortgage lender at the beginning of your mortgage loan.
Explore Tax Exemptions and Rebates: Research available tax exemptions and rebate programs for which you may be eligible. First-time homebuyers, seniors, veterans, or individuals with disabilities may qualify for exemptions or reductions in property taxes. Take advantage of these programs to lower your tax burden.
Improve Energy Efficiency: Enhancing your home’s energy efficiency can not only reduce your utility bills but also qualify you for tax incentives or rebates. Consider making upgrades such as installing energy-efficient appliances, windows, or insulation. These improvements not only benefit the environment but also your wallet.
Carefully Consider Renovations: Be mindful of how renovations or additions to your property could affect your property taxes. Major improvements that increase your property’s assessed value may lead to higher taxes. Consult with a real estate professional or tax advisor before making significant changes to your property.
Appeal Property Assessment if Necessary: If you believe your property’s assessment is too high, you have the right to appeal. Collect evidence of comparable property values or factors that affect your property’s worth. Seek guidance from a real estate agent or legal advisor to navigate the appeals process effectively.
Stay Informed: Keep abreast of any changes to tax laws or regulations that could impact your property taxes. Understanding the criteria used to assess property values and tax rates empowers you to make informed decisions. Regularly review your property tax assessments to ensure accuracy.
Plan for Future Payments: Use the experience of receiving your first property tax notice to plan for future payments. Set aside funds regularly to ensure you’re prepared when the next tax notice arrives. Budgeting for property taxes as part of your overall financial plan can help alleviate financial strain.
Seek Professional Guidance: If you’re unsure about any aspect of property taxes or how to reduce them, don’t hesitate to seek professional guidance. A real estate agent, tax advisor, or legal expert can provide valuable insights and assistance tailored to your specific situation.
By taking proactive steps and leveraging available resources, first-time homebuyers in Canada, especially New Brunswick can effectively manage their property taxes and potentially reduce their tax burden over time.
Helpful Resources From the Government of New Brunswick
- Understanding how property is Valued
- Understanding Property Assessment
- Service New Brunswick – NB Property Assessment
- Property Assessment GIS tool – Remember to have your PAN/PID or Address
*The information provided here is for educational purposes only. Consult professionals before making any financial or real estate decisions.
*This is not intended to solicit Sellers or Buyers under contract
*Image Credit – Unsplash
