After more than a decade of controversy, New Brunswick Premier Brian Gallant announced the government will introduce legislation this fall to repeal the Canaport LNG property tax deal.
The deal, signed by the City of Saint John and Irving Oil in 2005, fixed the municipal property taxes on the Canaport terminal to $500,000 per year until 2030.
READ MORE: Saint John in holding pattern over L.N.G. tax deal
In 2015 Saint John council passed a motion to ask the province for a repeal. The city then wrote a letter to the Gallant government saying they couldn’t afford the deal.
The premier made the announcement at Saint John City Hall alongside Service New Brunswick Minister Ed Doherty and Saint John Mayor Don Darling.
“The Saint John Common Council came to us requesting that it be cancelled and we want to listen and work with the municipalities to ensure they have everything they need to invest in economic growth and education, and things that will help the health care of New Brunswickers,” Gallant said.
READ MORE: Saint John council looks to Gallant government to repeal LNG tax deal
Darling says repealing the agreement is about creating a level playing field.
“I think if we were able to realize some increased revenue from these changes, it means we’re able to move our priorities forward at a faster pace, which is important for us,” Darling said.
Once the legislation is in place, repealing the tax deal would mean potentially access to millions of dollars more in yearly tax revenues for the city.
Irving Oil said it’s monitoring the process.
READ MORE: City of Saint John wants more time to review possible repeal of LNG tax deal
“The City of Saint John started a process to review the Canaport LNG tax legislation last year, and we continue to respect this process and its outcomes,” said Irving Oil’s director of public affairs Andrew Carson, in an email to Global News.
Gallant says it would be in effect for the 2017 property taxation year. He says there could be risk on an appeal on the evaluation of the property, and says any gained revenue will be set aside in a trust fund. The special account will protect the integrity of the government, city and local governments who received equalization payments, Gallant said.
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