The following definitions apply in this Act. 2023, c.40, s.14; 2025, c.28, s.1
“capital project” means a project of a type, category or size prescribed by regulation for the purposes of subsection 16.1(2).(projet d’immobilisation)
“capital renewal funding” means the funding referred to in subsection 16.1(2).(fonds affectés au renouvellement des immobilisations)
“capital renewal grant” means the funding provided to a community under section 16.2.(subvention de renouvellement des immobilisations)
“community” means a local government or a rural district.(communauté)
“Consumer Price Index” means the Consumer Price Index for New Brunswick (All-items) published by Statistics Canada under the Statistics Act (Canada).(indice des prix à la consommation)
“current year” means the year for which the equalization grant is to be determined.(année en cours)
“equalization grant” means the funding provided to a community under section 12.(subvention de péréquation)
“fiscal capacity funding” means the funding referred to in subsection 11.1(2).(fonds destinés à accroître la capacité fiscale)
“Fund” means the Regional Services Support Fund established under section 14.(Fonds)
“group” means a group of communities established by regulation.(groupe)
“heavy industrial property” means heavy industrial property as defined in the Assessment Act.(biens industriels lourds)
“local government” means a local government as defined in the Local Governance Act.(gouvernement local)
“local government cost index” means an estimate of the percentage change in the operational costs of communities computed under section 4.2.(indice des coûts des gouvernements locaux)
“Minister” means the Minister of Local Government and includes any person designated by the Minister to act on the Minister’s behalf.(ministre)
“municipal tax base” means the total of the following amounts, computed on or before October 15 in the previous year or as soon afterwards as the circumstances permit: (assiette fiscale municipale)
(a) the total assessed value of all real property liable to taxation under the Assessment Act in a municipality, excluding
(i) real property owned by the municipality,
(ii) real property of utility commissions owned by the municipality, and
(iii) real property referred to in paragraph (b.1) of the definition “real property” under the Assessment Act;
(b) the assessed value of all real property in a municipality owned by the Crown in right of the Province;
(c) the assessed value of real property in a municipality owned by the Crown in right of Canada, computed in accordance with section 2;
(d) the assessed value of real property in a municipality that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act; and
(i) heavy industrial property; and
(ii) all other non-residential property.
“previous year” means the year before the year for which the equalization grant is to be determined.(année précédente)
“provincial tax base” Repealed: 2025, c.28, s.1
“regional service commission” means a regional service commission established under the Regional Service Delivery Act.(commission de services régionaux)
“rural community” means a rural community within the meaning of the Local Governance Act and includes a regional municipality.(communauté rurale)
“rural community tax base” means the total of the following amounts, computed on or before October 15 in the previous year or as soon afterwards as the circumstances permit: (assiette fiscale de la communauté rurale)
(a) the total assessed value of all real property liable to taxation under the Assessment Act in a rural community, excluding
(i) real property owned by the rural community,
(ii) real property of utility commissions owned by the rural community, and
(iii) real property referred to in paragraph (b.1) of the definition “real property” under the Assessment Act;
(b) the assessed value of all real property in a rural community owned by the Crown in right of the Province;
(c) the assessed value of all real property in a rural community owned by the Crown in right of Canada, computed in accordance with section 3;
(d) the assessed value of real property in a rural community that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act; and
(i) heavy industrial property; and
(ii) all other non-residential property.
“rural district” means a rural district as defined in the Local Governance Act.(district rural)
“rural district tax base” means the total of the following amounts, computed on or before October 15 in the previous year or as soon afterwards as the circumstances permit: (assiette fiscale du district rural)
(a) the total assessed value of all real property liable to taxation under the Assessment Act in a rural district, excluding real property referred to in paragraph (b.1) of the definition “real property” under that Act;
(b) the assessed value of all real property in a rural district owned by the Crown in right of the Province;
(c) the assessed value of real property in a rural district owned by the Crown in right of Canada, computed in accordance with section 4; and
(i) heavy industrial property; and
(ii) all other non-residential property.
“year” means, unless the context requires otherwise, a calendar year.(année)
For the purposes of computing the municipal tax base in paragraph (c) of the definition “municipal tax base”, the assessed value of real property in a municipality owned by the Crown in right of Canada shall be determined by the Minister in accordance with subsection (2).
The assessed value of real property in a municipality owned by the Crown in right of Canada shall be determined by the Minister by making
(a) adjustments to the assessed value of the real property to reflect the second preceding year’s property value determined under the Payments in Lieu of Taxes Act (Canada), and
(b) any other adjustments as required in respect of real property reclassifications and alterations and other modifications to real property so as to reflect the anticipated property value determined under the Payments in Lieu of Taxes Act (Canada).
For the purposes of computing the rural community tax base in paragraph (c) of the definition “rural community tax base”, the assessed value of real property in a rural community owned by the Crown in right of Canada shall be determined by the Minister in accordance with subsection (2).
The assessed value of real property in a rural community owned by the Crown in right of Canada shall be determined by the Minister by making
(a) adjustments to the assessed value of the real property to reflect the second preceding year’s property value determined under the Payments in Lieu of Taxes Act (Canada), and
(b) any other adjustments as required in respect of real property reclassifications and alterations and other modifications to real property so as to reflect the anticipated property value determined under the Payments in Lieu of Taxes Act (Canada).
For the purposes of computing the rural district tax base in paragraph (c) of the definition “rural district tax base”, the assessed value of real property in a rural district owned by the Crown in right of Canada shall be determined by the Minister in accordance with subsection (2).
The assessed value of real property in a rural district owned by the Crown in right of Canada shall be determined by the Minister by making
(a) adjustments to the assessed value of the real property to reflect the second preceding year’s property value determined under the Payments in Lieu of Taxes Act (Canada), and
(b) any other adjustments as required in respect of real property reclassifications and alterations and other modifications to real property so as to reflect the anticipated property value determined under the Payments in Lieu of Taxes Act (Canada).
When the sum credited by the Minister to a rural district in respect of a grant under the Payments in Lieu of Taxes Act (Canada) for a fiscal year is less than the sum actually received by the Province, the Minister shall for the second next ensuing year cause the difference to be credited to the estimate prepared under paragraph 176.8(1)(a) of the Local Governance Act.
When the sum credited by the Minister to a rural district in respect of a grant under the Payments in Lieu of Taxes Act (Canada) for a fiscal year exceeds the sum actually received by the Province, the Minister shall for the second next ensuing year cause the difference to be debited from the estimate prepared under paragraph 176.8(1)(a) of the Local Governance Act.
2025, c.28, s.2 Despite sections 2, 3 and 4, the Minister may, in the Minister’s discretion, determine a municipal tax base, a rural community tax base or a rural district tax base 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. 2025, c.28, s.2
2025, c.28, s.22025, c.28, s.2
Subject to subsection (2), the local government cost index is determined by the following formula:
If the result of the computation under subsection (1) is a number greater than five, the local government cost index is deemed to be five percent.
For the purposes of subsection (1), the following values shall be determined by the Minister based on the most recent data for New Brunswick published by Statistics Canada:
(a) population and change in population based on the official population estimate or, if an official population estimate has not been published, the latest official census;
(b) Consumer Price Index;
(c) wages and salaries; and
(d) non-residential building cost based on the Non-Residential Building Construction Price Index.
The Minister may, in the Minister’s discretion, determine any value referred to in subsection (3)
(a) in the absence of a publication referred to in subsection (3), 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.
Repealed: 2025, c.28, s.3 2025, c.28, s.3Repealed: 2025, c.28, s.4 2025, c.28, s.4
Repealed: 2025, c.28, s.5 2025, c.28, s.5Repealed: 2025, c.28, s.6 2025, c.28, s.6
2025, c.28, s.7In each year, the Minister may provide funding to eligible communities for the purposes of this Act out of the money appropriated by the Legislature for those purposes. 2025, c.28, s.7
Subject to subsections (2) to (4), the Minister shall approve the proposed municipal estimate that a municipality submits to the Minister in accordance with subsection 99(2) of the Local Governance Act.
If the Minister requires, a municipality shall participate in partnership budgeting in which the municipality shall provide the Minister with an explanation and justification of its projected revenues and proposed expenditures.
If the Minister requires partnership budgeting, the Minister may refuse to approve any part of the proposed municipal estimate that the Minister considers excessive, having regard to the standard of services provided by the municipality in preceding years and the proposed development and improvement of services in the municipality.
The decision of the Minister not to approve a part of the proposed municipal estimate for a municipality under subsection (3) is final and not subject to review.
Subject to subsections (2) to (4), the Minister shall approve the proposed rural community estimate that a rural community submits to the Minister in accordance with subsection 99(2) of the Local Governance Act.
If the Minister requires, a rural community shall participate in partnership budgeting in which the rural community shall provide the Minister with an explanation and justification of its projected revenues and proposed expenditures.
If the Minister requires partnership budgeting, the Minister may refuse to approve any part of the proposed rural community estimate that the Minister considers excessive, having regard to the standard of services provided by the rural community in preceding years and the proposed development and improvement of services in the rural community.
The decision of the Minister not to approve a part of the proposed rural community estimate for a rural community under subsection (3) is final and not subject to review.
On or before the first business day of each month in each year, the Minister shall pay to each municipality 2025, c.28, s.8
(a) a portion of the equalization grant referred to in section 12, and
(b) Repealed: 2025, c.28, s.8
(c) one-twelfth of the amount of the estimate of money under paragraph 99(2)(b) of the Local Governance Act.
2025, c.28, s.9
On or before the first business day of each month in each year, the Minister shall pay to each rural community
(a) a portion of the equalization grant referred to in section 12 that remains after the rural community was credited the portion of the grant for the services provided to the rural community by the Minister, and
(b) Repealed: 2025, c.28, s.9
(c) one-twelfth of the amount estimated under paragraph 99(2)(b) of the Local Governance Act.
Each year, the Minister shall credit to each rural community the portion of the equalization grant that relates to the provision of services to the rural community by the Minister.
Each year, the Minister shall compute and credit to each rural community the amount to be raised on the rural community tax base for the services provided to the rural community by the Minister.
Each year, the Minister shall 2025, c.28, s.10
(a) credit to each rural district
(i) the equalization grant referred to in section 12, and
(ii) Repealed: 2025, c.28, s.10
(b) compute and credit to each rural district the amount to be raised on the rural district tax base.
2025, c.28, s.11 2025, c.28, s.11
For the purposes of this section, “total amount of funding” means the total amount of fiscal capacity funding for all eligible communities.
The Minister may use fiscal capacity funding to provide equalization grants to eligible communities in order to ensure that they achieve the purposes set out in section 5 of the Local Governance Act.
On or before July 31 of the previous year, or as soon afterwards as the circumstances permit, the Lieutenant-Governor in Council shall fix by order the total amount of funding for the current year on the basis of the estimated total amount of equalization grants to be provided to all eligible communities in the current year.
For the purposes of subsection (3), the estimated total amount of funding for the year 2026 shall be fixed by the Minister, in the Minister’s discretion.
For the purposes of subsection (3), for the year 2027 and each subsequent year, the estimated total amount of funding is determined by the following formula:
2025, c.28, s.12
The amount of the equalization grant to be provided to a community in the current year is determined by the following formula:
For the purposes of this section, an equalization amount shall be determined or adjusted, based on the group to which the community belongs, in accordance with the regulations.
(a) when variable “H” applies to the year 2025;
(b) when variable “I” applies to the year 2024 or 2025; or
(c) when variable “J” applies to the year 2023, 2024 or 2025.
For the purposes of subsection (3), variable “H”, variable “I” or variable “J”, as the case may be, is determined by the following formula:
Repealed: 2025, c.28, s.14 2025, c.28, s.14Repealed: 2025, c.28, s.15 2025, c.28, s.15
There is established a fund named the Regional Services Support Fund.
The Minister of Finance and Treasury Board shall be the custodian of the Fund.
Payments into the Fund shall be made in accordance with section 15.
Any payments out of the Fund made for the purposes of section 16 shall be a charge on and payable out of the Fund.
Payments out of the Fund shall not exceed an amount that represents the contributions made to the Fund and accumulated interest.
The Fund shall be held, for the purposes of this Act, in a separate account in the Consolidated Fund.
Any interest arising from the Fund shall be paid into and form part of the Fund.
Any amounts remaining in the Fund at the end of a fiscal year shall be carried forward to the next fiscal year.
The Minister of Finance and Treasury Board may invest the money in the Fund in the manner authorized by the Trustees Act, including investments in securities issued under the Provincial Loans Act.
2025, c.28, s.162025, c.28, s.17
The Lieutenant-Governor in Council shall fix by order the total amount to be paid into the Fund for the allocation of grants to regional service commissions during the current year.
The Lieutenant-Governor in Council shall not be required to fix a new amount under subsection (1) each year, and the amount so fixed remains in effect until it is amended.
The amount fixed under subsection (1) shall be paid into the Fund each year.
2022, c.56, s.2; 2025, c.28, s.18
The assets of the Fund shall be used to support the regional service commissions in implementing the activities identified in their regional strategy developed in accordance with section 3.2 of the Regional Service Delivery Act.
On application for a grant by a regional service commission, the Minister may make payments out of the Fund for the purposes of subsection (1) and pay sums to a regional service commission, subject to any parameters, terms, conditions or restrictions prescribed by regulation.
Subject to subsection (4), the Minister shall not award a grant in an amount greater than 50% of the total cost of the activities proposed in the application.
An application for a grant may propose a multi-year activity, but the Minister shall not pay to a regional service commission in any one year an amount greater than 50% of the total cost of all the activities proposed by the regional service commission for that year.
An application for a grant shall be made in a form and in the manner determined by the Minister.
Each year, the Minister shall table a report in the Legislative Assembly specifying all grants provided and all payments made out of the Fund in the previous year.
2025, c.28, s.192025, c.28, s.19
For the purposes of this section, “total amount of funding” means the total amount of capital renewal funding for all eligible communities.
The Minister may provide capital renewal funding to support eligible communities in implementing capital projects relating to the renewal and replacement of community infrastructure, subject to the parameters, terms, conditions or restrictions, if any, prescribed by regulation.
On or before July 31 of the previous year, or as soon afterwards as the circumstances permit, the Lieutenant-Governor in Council shall fix by order the total amount of funding for the current year.
For the years 2026 to 2030, the total amount of funding shall be fixed by the Minister, in the Minister’s discretion.
For the year 2031 and for each subsequent year, the total amount of funding is determined by the following formula:
2025, c.28, s.192025, c.28, s.19
The amount of a capital renewal grant to be provided to a community shall be determined in accordance with the regulations.
The Minister shall pay to each eligible community a portion of the capital renewal grant referred to in subsection (1)
(a) on or before January 31 in each year, and
(b) on or before July 31 in each year.
Despite any provision of this Act, other than this section, or of any other Act or any regulation under this Act or any other Act, a municipality that collects tax and penalties under subsection 6(2) of the Real Property Tax Act is not entitled to the payment under paragraph 9(c) for the period of time of the collection.
Despite any provision of this Act, other than this section, or of any other Act or any regulation under this Act or any other Act, when the Minister of Finance and Treasury Board collects under the Real Property Tax Act the tax imposed by a municipality under paragraph 5(2)(a) of that Act and the penalties on the tax for and on behalf of the municipality and the municipality claims the tax and penalties from the Minister of Finance and Treasury Board, the municipality is not entitled to the payment under paragraph 9(c).
Despite any provision of this Act, other than this section, or of any other Act or any regulation under this Act or any other Act, when a municipality has been paid the sums under paragraph 9(c) for a year, whether before or after the commencement of this subsection, the payment shall be deemed to be in full satisfaction of the payment over to the municipality of the tax imposed under paragraph 5(2)(a) of the Real Property Tax Act and the penalties on the tax for that year.
Despite any provision of this Act, other than this section, or of any other Act or any regulation under this Act or any other Act, a rural community that collects tax and penalties under subsection 6(4) of the Real Property Tax Act is not entitled to the payment under paragraph 10(1)(c) for the period of time of the collection.
Despite any provision of this Act, other than this section, or of any other Act or any regulation under this Act or any other Act, when the Minister of Finance and Treasury Board collects under the Real Property Tax Act the tax imposed by a rural community under paragraph 5(2)(a.1) of that Act and the penalties on the tax for and on behalf of the rural community and the rural community claims the tax and penalties from the Minister of Finance and Treasury Board, the rural community is not entitled to the payment under paragraph 10(1)(c).
Despite any provision of this Act, other than this section, or of any other Act or any regulation under this Act or any other Act, when a rural community has been paid the sums under paragraph 10(1)(c) for a year, whether before or after the commencement of this subsection, the payment shall be deemed to be in full satisfaction of the payment over to the rural community of the tax imposed under paragraph 5(2)(a.1) of the Real Property Tax Act and the penalties on the tax for that year.
If the municipal tax base includes the assessed value of real property in the municipality that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act, the portion of the amount referred to in paragraph 9(c) that is equal to the tax on the real property that would be due and owing to the municipality under subsection 5(2.001) of the Real Property Tax Act if the real property were not exempt from taxation shall be deemed to be a grant paid by the Minister to the municipality.
If the rural community tax base includes the assessed value of real property in the rural community that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act, the portion of the amount referred to in paragraph 10(1)(c) that is equal to the tax on the real property that would be due and owing to the rural community under subsection 5(2.003) of the Real Property Tax Act if the real property were not exempt from taxation shall be deemed to be a grant paid by the Minister to the rural community.
2025, c.28, s.20
The Lieutenant-Governor in Council may pay to a municipality or rural community or credit to a rural district a stimulation grant to assist the municipality, rural community or rural district in developing or improving the standard of a service or facility.
A grant paid or credited under subsection (1) may be either current or capital in nature, but if the grant is capital in nature, it shall be used by the municipality, the rural community or the Minister to reduce any capital borrowing related to the service or facility for which the grant is made unless the Lieutenant-Governor in Council agrees to pay to a municipality or a rural community or credit to a rural district an annual grant related to the amortization and maintenance costs of a project in lieu of a grant to be used to reduce the capital borrowing.
The Lieutenant-Governor in Council may attach terms and conditions to a stimulation grant.
The total amount of stimulation grants to be paid or credited in any year may be fixed by order of the Lieutenant-Governor in Council.
Repealed: 2025, c.28, s.20
A stimulation grant may be paid or credited in one or more annual instalments not exceeding 10, but when a stimulation grant is being paid or credited in respect of a service or facility the costs of which are to be met on an amortized basis in relation to principal and interest, the stimulation grant may be paid or credited in whole or in part in conjunction with the schedule of amortization.
For the purposes of this section, a water or wastewater commission established or continued under section 15.2 of the Clean Environment Act and a regional service commission shall be deemed to be a municipality.
The Lieutenant-Governor in Council may, on the terms and conditions agreed to by the parties, grant to a municipality or rural community that is in financial difficulty the assistance by way of loan, guarantee, grant or otherwise as the Lieutenant-Governor in Council considers necessary.
2022, c.56, s.2Every five years after September 1, 2025, or at any earlier time specified by the Minister, the Minister shall undertake a review of the operation of this Act. 2022, c.56, s.2; 2025, c.28, s.21
The Regulations Act does not apply to an order made under this Act, other than a regulation made under section 25.
The Minister shall administer this Act and may designate persons to act on the Minister’s behalf.
2025, c.28, s.22
The Lieutenant-Governor in Council may make regulations
(a) prescribing the type, category or size of projects for the purposes of the definition “capital project”;
(b) establishing groups of communities for the purposes of the definition “group”;
(c) determining the assessed value of non-residential property, including heavy industrial property, for the purposes of the definitions “municipal tax base”, “rural community tax base” and “rural district tax base”;
(d) governing fiscal capacity funding for the purposes of section 11.1;
(e) governing equalization grants for the purposes of section 12, including regulations
(i) respecting the determination or adjustment of equalization amounts for the purposes of subsection 12(2),
(ii) prescribing one or more formulas for the purposes of determining or adjusting an equalization amount under subsection 12(2) and the manner in which a formula is to be applied,
(iii) prescribing any restrictions or conditions to be met by the Minister in providing an equalization grant to a community, and
(iv) respecting any other matter that may be necessary for the proper administration of equalization grants;
(f) governing the Fund for the purposes of section 16, including regulations
(i) establishing the parameters to be followed by the Minister in selecting activities for funding, including designating
(ii) prescribing any restrictions or conditions to be met by the Minister in withdrawing money from the Fund and paying it to a regional service commission,
(iii) prescribing terms and conditions to be met by a regional service commission to maintain eligibility for payments,
(iv) respecting reporting by a regional service commission concerning the administration and use of money it has received from the Fund, and
(v) respecting any other matter that may be necessary for the proper administration of the Fund;
(g) governing capital renewal funding for the purposes of section 16.1, including regulations
(i) prescribing parameters, terms, conditions or restrictions for the purposes of subsection 16.1(2), including
(ii) respecting capital projects for the purposes of subsection 16.1(2), including
(iii) respecting any other matter that may be necessary for the proper administration of capital renewal funding;
(h) governing capital renewal grants for the purposes of section 16.2, including regulations
(i) prescribing the manner in which the Minister may determine the amount of a capital renewal grant for the purposes of subsection 16.2(1),
(ii) prescribing one or more formulas for the purposes of determining the amount of a capital renewal grant under subsection 16.2(1) and the manner in which a formula is to be applied,
(iii) prescribing terms and conditions to be met by a community to maintain eligibility for a capital renewal grant,
(iv) prescribing the circumstances in which and the time within which a capital renewal grant shall be deferred, reallocated or repaid, and
(v) respecting reporting by a community concerning the administration and use of capital renewal funding;
(i) governing the effect of any calculation under this Act or the regulations that produces a result equal to or less than zero;
(j) prescribing information or documentation to be provided to the Minister in relation to funding under this Act;
(k) respecting funding to be provided to a community when that community or a portion of that community is incorporated or is restructured or dissolved following an amalgamation, an annexation or a decrease in its territorial limits, as the case may be;
(l) defining any word or expression used but not defined in this Act for the purposes of this Act, the regulations or both;
(m) respecting any other matter or thing necessary or advisable to carry out the intent of this Act.
Regulations may vary for or be made in respect of different communities, groups, capital projects, matters or activities or different classes or categories of communities, groups, capital projects, matters or activities.
A regulation may be general or particular in its application, may be limited as to time or place or both and may exclude any community, group, capital project, matter or activity from the application of the regulation.