Property tax assessments will be up two per cent this year, and NDP Leader Mike Redmond says the harmonized sales tax is partly to blame.
After the HST was introduced on April 1, 2013, P.E.I.'s inflation rate rose to the second-highest in the country, more than twice the national rate. Property tax assessment increases are based on the inflation rate. NDP Leader Mike Redmond said government should change the formula for assessments this year.
"There obviously should have been a modification of some sort," said Redmond.
"It comes back to the fact you have a provincial government that has not had discussions with the business community, homeowners, communities at large, how is this going to affect the bottom line of each and every household across Prince Edward Island, and obviously it's having a very, very negative effect."
Property assessments also went up by two per cent a year ago. At that time P.E.I.'s inflation rate was closer to the national average.