Assessment Definitions and Explanations
Market Value – Market value is defined as the amount that a property might be expected to realize if a willing seller sells it on the open market to a willing buyer.
Mill – amount of tax per thousand dollars of property value
Budget – Property Tax Revenue required to pay for programs and services
Property Tax – Tax imposed by the County on owners of real property within its jurisdiction based on the value of the property
Tax Rate – calculated by taking the assessed value of the property multiplied by the mill rate and then divided by 1000.
Per property share of tax – Each Property Assessment multiplied by Tax Rate
Property Classification – Properties are classified as either residential, non residential, farmland, linear or machinery and equipment. Some properties have more than one class. The sub-classes of property are detailed below and provide a brief explanation of the general assessment. Please check the classification of your property to ensure that it is properly described.
- Residential Properties – Residential properties are assessed at market value. Market value is determined by analyzing the sales of all property types throughout the municipality. Mass appraisal techniques are used in this valuation process. Since assessment reflects mid range sale values, the assessment may be slightly higher or lower than an actual sale price on a particular property.
- Non-Residential Properties – This category of property refers to industrial and commercial operations, such as industrial plants, gravel pit operations, service stations, meat processing facilities, stores, etc. Properties that have a multi-purpose use, such as a commercial business operating from a residential acreage, would have the commercial portion of the assessment classed as non-residential. The non-residential category of land, buildings and structures is assessed at market value.
- Farmland – Farmland is assessed on the ability of land to produce agricultural products. The Minister’s Guidelines, in conjunction with the Alberta Farmland Assessment Manual, has been utilized to prepare farmland assessments. The Rural Assessment Policy applies the amount of agricultural valued land assessment in the owner’s unit as an exemption towards the residence.
- Machinery and Equipment – Machinery and equipment (M & E) that is used for processing or manufacturing is assessed at the stipulated regulatory level as per the Minister’s Guidelines. This category includes properties such as gas plants, gas and oilfield installations, seed cleaning facilities, etc.
- Linear properties – Linear properties include electric transmissions lines, telephone and telecommunications equipment, oil and gas wells, pipelines, towers, power generation and cable. Linear property is assessed by provincial assessors using regulated rates and depreciation schedules which apply specifically to this property.
- Farm Properties – Farm properties often contain several assessment classes. If the property contains a residence, then the residence, along with the first 3 acres will be assessed at market value as if it were a 3.0 acre subdivided parcel. These values are classified as residential on your notice. If there is a commercial or industrial operation on the property, all buildings and improvements and the land area used for the operation will be assessed at market value. These values will be classified as non-residential. If there is machinery and equipment used in these operations, the machinery and equipment will be assessed based on regulated rates and the assessment will be classed as machinery and equipment. The farmland is valued based on agricultural values and is classified as farmland. Farm buildings are exempt from assessment and taxation to the extent that they are used for farming purposes.