Property tax increase is a strain on apartment industry

SAINT JOHN, NB -  An increase in property taxes throughout the province is a strain on the apartment industry in New Brunswick.

President of the New Brunswick Apartment Owners Association, Scott Stacey says  a jump in the property tax is a burden on the landlords and in turn the renters.

Stacey says property taxes have been increasing over the past couple of years  and it's a problem because any increase ends up being passed along to the renters.

He says rents are already high enough in the province and something has got to give.

"For rental properties it's a double tax increase because you have a municipal rate and as well a provincial tax rate so when the assessment goes up the rental property has to pay both of those taxes so that gets passed through directly into the rent," says Stacey.

Stacey says the increasing property taxes will have a negative impact on development in the province because other markets in the Atlantic region may offer a more attractive investment.