The New Brunswick Seniors Federation is seeking reforms to the property tax system that would reduce the tax bills seniors are paying on their homes.

Across New Brunswick, homeowners are receiving their annual property tax assessments and tax bills in the mail. The rising tax bills in many communities has prompted concern from a seniors lobby group about the possibility that older citizens may be forced out of their homes because of the cost of their payments.

Robert LeBlanc, the president of the New Brunswick Seniors Federation, said he'd like to see changes that would cut the amount seniors pay in property tax.

"What we'd like to see as a federation, is that a person after 65 years old on their main dwelling, instead of having an increase of $500 in taxes, have a decrease of $500 in taxes to make them independent and able to stay in their home longer," LeBlanc said.

Service New Brunswick assesses property across the province and then sends out tax bills based on the tax rates fixed in the homeowners' local community.

Finance Minister Greg Byrne said last week that he thought many property tax bills were too high because some municipalities did not follow a transparency formula pushed by the provincial government.

The provincial rules would mean, if assessed home values went up beyond the inflation rate plus the value of new construction done on the property, a new formula would kick in.

That will force the local tax rate to automatically go down and local councils that want to collect more property tax will have to raise it back up through a vote.

Fredericton mayor supports reform

Fredericton Mayor Brad Woodside said earlier this week that he'd like to see a system where seniors can defer paying higher property taxes until they sell their homes.

He said a deferral system would be a big help to seniors, and he's hoping the provincial government picks up the idea.

"I think it's good that seniors who have worked all their lives are given an opportunity to stay in their homes. I think that's good for all of us," Woodside said.

Fredericton city council voted to increase property tax bills in its 2010 budget by 0.85 cents to $1.42 per $100 of assessed property value.

Although the seniors federation said it endorses Woodside's idea, they'd like any reform to go even further.

LeBlanc said if tax bills continue to increase, seniors could be hit with massive lump-sum payment when they do finally sell their homes.

LeBlanc said seniors' tax rates should be frozen until the sale goes through.

The lobby group said the proposal is not unfair to younger homeowners who will continue to be stuck with soaring property tax bills while seniors would get discounted rates.

"There is one thing that is assured in life we are all going to become seniors some day. They will benefit form it down the line also," LeBlanc said.

"It has to start somewhere naturally. If everybody can look forward to that down the line and say at least when I reach 65 I will get a break in my property tax."

LeBlanc said he has been speaking to representatives from the provincial government and he believes the issue will be taken seriously.