Under the Real Property Tax Act and its regulations, the Province has a system for collecting property taxes in a centralized way. Each year, property owners may receive several types of charges on their tax bills, including provincial property tax, municipal property tax, fire district charges, and Island Waste Management (IWMC) charges.

In a recent amendment to the Real Property Tax Act Tax Credit Factor Regulations on March 6, 2023 there were revisions to the “Schedule” of the Tax Credit Factor Regulations. This revision included adjustments to the tax credit factors for some municipalities for the year 2023 and subsequent years. These factors determine the amount of tax credit that property owners receive, thereby impacting their overall property tax obligations.

The amendment revokes the existing Schedule under the Tax Credit Factor Regulations (EC802/17) and introduces a new Schedule. In the new schedule the municipalities of: Charlottetown, Summerside, Stratford, Cornwall, Alberton, Borden-Carleton, Kensington, O’Leary, Souris, Tignish, Abrams Village, Three Rivers, Brackley, Eastern Kings, Hazelbrook, Kingston, Kinkora, Linkletter, Miltonvale Park, Miscouche, New Haven-Riverdale, North Rustico, Sherbrooke, Union Road, Victoria, Warren Grove, and Wellington remain the same as rate as 2022.

However, the tax credit factor for West River has been increased due to a higher proportion of the assessment base qualifying for a planning credit. The factor has been adjusted to a more precise figure to prevent revenue loss from rounding discrepancies. In addition, the tax credit factor for North Shore has also been increased. This adjustment accounts for North Shore’s new responsibility for planning within areas previously designated as Pleasant Grove and Grand Tracadie, effective April 17, 2022, following the Minister of Agriculture and Land’s approval of their official plan.

The amendments to the Real Property Tax Act Tax Credit Factor Regulations are designed to reflect necessary updates in municipal responsibilities and ensure accurate tax credit calculations. By revising the Schedule to incorporate new factors, these regulations seek to align tax credits with the service levels and responsibilities of each municipality.

Prince Edward Island (EC2023-208), March 18, 2023