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CFIB Petitions Atlantic Canada Municipalities to Close Commercial Property Tax Gap

October 20, 2026 Add Comment

The Canadian Federation of Independent Business (CFIB) has launched a petition urging municipalities across Newfoundland and Labrador, New Brunswick and Nova Scotia to stop taxing commercial properties at higher rates than residential properties, as local governments begin preparing their 2027 budgets.

The petition follows CFIB’s Atlantic Canada Commercial Property Tax Report, released in September, which examined 80 municipalities across the four Atlantic provinces. The report found that in all but four of those municipalities, businesses are taxed at a higher rate than homes of the same value.

“Same property value, but a much bigger tax bill. That’s the reality for small businesses across Newfoundland and Labrador,” said Jonathan Galgay, CFIB’s Director of Legislative Affairs for the province. In New Brunswick, CFIB’s Atlantic Vice-President Louis-Philippe Gauthier made a similar point, saying small businesses in the province face the same gap between commercial and residential tax rates.

Impact on Small Businesses

CFIB’s data show the burden falls hardest on the smallest firms. Among businesses with fewer than five employees, 31% say property tax accounts for more than 10% of their operating costs, and 40% say it has had a significant negative impact on profitability. Among businesses that say they have been hurt by property taxes, 21% report delaying or cancelling an investment, and 18% say they have cut staff or hours.

The organization also says small business owners feel their concerns are not being heard at the municipal level. According to CFIB, 73% of Atlantic small business owners disagree that their municipality understands how property taxes affect their business.

Photo by Abdel Achkouk on Pexels

“Property tax arrives in full whether a business had a good year or a bad one,” Galgay said. “Councils don’t have to collect less to fix this. They just need to share the load fairly, and commit to a clear, five-year path to equal rates.” Gauthier delivered the same message to municipalities in New Brunswick.

What CFIB Is Asking For

CFIB is calling on municipalities to adopt a five-year plan to reduce and eventually eliminate higher tax rates on commercial property, and to publicly report how the property-tax burden is divided between property classes. The organization is also asking provincial governments in the region to ensure their property-tax legislation treats all property classes equally.

CFIB says small business owners can add their voice by signing the petition through the organization’s website. The petition drive covers Newfoundland and Labrador, New Brunswick and Nova Scotia, with CFIB saying it represents more than 1,700 members in Newfoundland and Labrador and more than 3,900 members in New Brunswick.

Small Business Property Tax Burden in Atlantic Canada

31%
Small firms (<5 employees) where tax exceeds 10% of operating costs
40%
Businesses reporting significant negative profitability impact
73%
Owners who feel municipality doesn't understand tax impact
Figures as reported in the sources cited below.

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Timothy Campbell
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Timothy Campbell writes about business in Canada — the deals, the disruptions, and the people making them happen. He's covered everything from scrappy Toronto startups to the entrenched giants of energy and finance, always looking for the story behind the numbers. Outside of writing, he spends time helping early founders figure out how to talk about what they're building.