Acts and Regulations

2025-34 - Fiscal Capacity Funding

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 2025-34
under the
Community Funding Act
(O.C. 2025-160)
Filed September 12, 2025
Under section 25 of the Community Funding Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the Fiscal Capacity Funding Regulation – Community Funding Act.
Definitions
2The following definitions apply in this Regulation.
“Act” means the Community Funding Act. (Loi)
“community tax base” means a municipal tax base, rural community tax base or rural district tax base. (assiette fiscale de la communauté)
“net budget” means (budget net)
(a) with respect to a local government, the estimate of money required for the operation of the local government adopted by the local government under paragraph 99(2)(a) of the Local Governance Act and approved by the Minister in the previous year, less all non-tax revenues,
(b) with respect to a rural community, the sum of the following, less all non-tax revenues:
(i) the estimate of money required for the operation of the rural community adopted by the rural community under paragraph 99(2)(a) of the Local Governance Act and approved by the Minister in the previous year; and
(ii) the estimate of the money required for the provision of services referred to in paragraph 110(a) of the Local Governance Act and approved by the Minister in the previous year; and
(c) with respect to a rural district, the estimate of the money required for the provision of services in the previous year, including the costs of administration attributable to those services, under paragraph 176.8(1)(a) of the Local Governance Act, less all non-tax revenues.
“residential property” means real property in respect of which the person in whose name it is assessed has been credited against taxes owing in respect of the property for the previous year under subsection 2(1) or section 2.1 of the Residential Property Tax Relief Act. (bien résidentiel)
“warrant for computation of the equalization grant” means the value of variable “N” as determined in accordance with subsection 9(1). (mandat pour le calcul de la subvention de péréquation)
Population
3(1)For the purposes of sections 7 and 10, population shall be determined by the Minister based on
(a) the official population estimate for New Brunswick published by Statistics Canada, or
(b) if an official population estimate has not been published, the latest official census.
3(2)The Minister may determine a value for population
(a) in the absence of a publication referred to in subsection (1), or
(b) when a community or a portion of a community has been incorporated or is restructured or dissolved following an amalgamation, an annexation or a decrease in its territorial limits, as the case may be.
3(3)When the Minister determines a value for population under subsection (2), the Minister shall consider the most recent data on New Brunswick published by Statistics Canada.
Establishment of groups
4For the purposes of the definition “group” in section 1 of the Act, groups are established in Schedules 1 to 6.
Computation of the assessed value of non-residential property
5For the purposes of paragraph (e) of the definitions “municipal tax base” and “rural community tax base” in section 1 of the Act and paragraph (d) of the definition “rural district tax base” in that section, the assessed value of non-residential property is determined by the following formula:
(A – 1) × B
where
A means the average of the rate fixed in the previous year for properties throughout the province under clause 5(2)(a)(ii)(A) or (B), (a.1)(ii)(A) or (B), (c)(ii)(A) or (B) or (d)(ii)(A) or (B), as the case may be, of the Real Property Tax Act;
B means the assessed value of heavy industrial property or other non-residential property, as the case may be.
Current year equalization amount
6(1)Subject to subsection (2), for the purposes of section 12 of the Act, the equalization amount is the unadjusted equalization amount determined in accordance with subsection 7(1) multiplied by the tax burden index determined in accordance with subsection 10(1).
6(2)If the amount determined under subsection (1) is greater than 20% of the net budget of the community in the previous year, the equalization amount is deemed to be 20% of the net budget of the previous year multiplied by the local government cost index.
Unadjusted equalization amount
7(1)For the purposes of subsection 6(1), the unadjusted equalization amount for a community is determined by the following formula:
C × D ÷ 100 × E
where
C means the tax base per capita deficiency;
D means the median tax rate of the communities in the group;
E means the population of the community.
7(2)For the purposes of subsection (1), the value of variable “C” is determined by the following formula:
F – G
where
F means the tax base per capita of the group;
G means the tax base per capita of the community.
7(3)For the purposes of subsection (2), the value of variable “F” is determined by the following formula:
H ÷ I
where
H means the sum of each municipal tax base, rural community tax base and rural district tax base of communities in the group;
I means the population of the group.
7(4)For the purposes of subsection (2), the value of variable “G” is determined by the following formula:
J ÷ K
where
J means the community tax base;
K means the population of the community.
Computation of tax rate of a community
8(1)For the purposes of variable “D” in subsection 7(1), the tax rate of a community is determined by the following formula:
L ÷ M × 100
where
L means the indexed warrant for computation of the equalization grant for the community in the current year;
M means the community tax base.
8(2)For the purposes of subsection (1), the value of variable “L” is determined by the following formula:
N × O
where
N means the warrant for computation of the equalization grant of the community for the previous year;
O means the local government cost index.
Warrant for computation of the equalization grant
9(1)For the purposes of subsection 8(2), the value of variable “N” is determined by the following formula:
P – Q – R – S – T – U – V
where, with respect to the community,
P means the adjusted total expenses in the previous year;
Q means the equalization amount for the previous year;
R means the non-property tax revenue in the previous year;
S means the water cost in the previous year;
T means the general operating fund deficit in the previous year;
U means sums paid to its regional service commission in the previous year under paragraph 8(h) of the Regional Service Delivery Act in respect of the services and actions set out in subsection 3.2(1) of that Act;
V means the assessment fees paid to Service New Brunswick in the previous year under section 24 of the Service New Brunswick Act.
9(2)For the purposes of subsection (1), in the case of a municipality, the value of variable “P” is determined by the following formula:
W + X
where
W means the total expenses of the municipality in the previous year;
X means the amount of tax collected under section 5 of the Real Property Tax Act in the previous year in respect of roads, streets or highways that are under the control of the Minister of Transportation and Infrastructure and that have not vested in the municipality under the provisions of section 32 of the Highway Act.
9(3)For the purposes of subsection (1), in the case of a rural community, the value of variable “P” is determined by the following formula:
Y + Z + AA
where
Y means the total expenses of the rural community in the previous year;
Z means the amount of tax collected under section 5 of the Real Property Tax Act in the previous year in respect of roads, streets or highways that are under the control of the Minister of Transportation and Infrastructure and that have not vested in the rural community under the provisions of section 32 of the Highway Act;
AA means the total expenses for the provision of services to the rural community by the Minister under paragraph 110(a) of the Local Governance Act in the previous year.
9(4)For the purposes of subsection (1), in the case of a rural district, the value of variable “P” means the total expenses of the rural district in the previous year.
Computation of the tax burden index
10(1)For the purposes of subsection 6(1), the tax burden index is determined by the following formula:
AB ÷ AC
where
AB means the tax burden of the community in the current year;
AC means the tax burden of the group in the current year.
10(2)For the purposes of the formula referred to in subsection (1), if the quotient is a number greater than 1, it is deemed to be 1.
10(3)For the purposes of subsection (1), the value of variable “AB” is determined by the following formula:
(AD × AE ÷ 100) ÷ AF
where
AD means the median tax rate of the communities in the group in the previous year;
AE means the median value of residential property in the community on January 1 of the previous year;
AF means the median household income after taxes of the community in the previous year.
10(4)For the purposes of subsection (1), the value of variable “AC” is determined by the following formula:
(AG × AH ÷ 100) ÷ AI
where
AG means the median tax rate of the communities in the group in the previous year;
AH means the median value of residential property of the communities in the group on January 1 of the previous year;
AI means the median household income after taxes of the communities in the group in the previous year.
10(5)For the purposes of subsection (4), the value of variable “AI” is determined by the following formula:
AJ ÷ AK
where
AJ means the weighted median income after taxes of the communities in the group;
AK means the population of the group.
10(6)For the purposes of subsection (5), the value of variable “AJ” is determined by the following formula:
AL × AM
where
AL means the median household income after taxes of the community;
AM means the population of the community.
Result less than zero
11If the result of a computation under sections 6 to 9 is a number less than zero, the result is deemed to be zero.
SCHEDULE 1
METROPOLITAN
Moncton
The City of Fredericton
The City of Saint John
SCHEDULE 2
URBAN
Bathurst
Campbellton
Dieppe
Edmundston
Miramichi
SCHEDULE 3
MUNICIPAL CENTRE
Belle-Baie
Caraquet
Grand Falls
Hampton
Heron Bay
Municipal District of St. Stephen
Oromocto
Quispamsis
Rothesay
Shediac
Shippagan
Sussex
Tantramar
The Town of Riverview
Town of Saint Andrews
Tracadie
Woodstock
SCHEDULE 4
RESIDENTIAL HUB
Beaurivage
Belledune
Bois-Joli
Cap-Acadie
Champdoré
District of Carleton North
District of Tobique Valley
Eastern Charlotte
Grand Bay-Westfield
Grand Manan
Grand-Bouctouche
Hartland
Haut-Madawaska
Île-de-Lamèque
Kedgwick
Memramcook
Miramichi River Valley
Municipalité des Hautes-Terres
Municipality of Grand Lake
Nackawic-Millville
Neguac
New Maryland
Regional Community of Southern Victoria
Saint-Quentin
Salisbury
The Community of Three Rivers
Village of Doaktown
Village of McAdam
Vallée-des-Rivières
SCHEDULE 5
RESIDENTIAL
Alnwick
Arcadia
Beausoleil
Butternut Valley
Campobello Island
Central York
Five Rivers
Fundy Albert
Fundy Shores
Fundy-St. Martins
Hanwell
Harvey
Maple Hills
Municipality of Lakeland Ridges
Nashwaak
Nouvelle-Arcadie
Rivière-du-Nord
Strait Shores
Sunbury-York South
Upper Miramichi
Valley Waters
Village of Fredericton Junction
Village of Tracy
SCHEDULE 6
RURAL DISTRICT
Acadian Peninsula rural district
Capital Region rural district
Chaleur rural district
Fundy rural district
Greater Miramichi rural district
Kent rural district
Kings rural district
Northwest rural district
Restigouche rural district
Southeast rural district
Southwest rural district
Western Valley rural district
N.B. This Regulation is consolidated to September 12, 2025.