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Assessment

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1. What is an assessment?

An assessment is the process of estimating the value of properties for taxation purposes. Assessment is a tool to equitably distribute the tax burden throughout a municipality. The value of the assessment influences the tax amount that will be charged to the owner of the property.

2. What is Market Value?

Market value is, as of a given date, the most probable sale price of a property in a competitive and open market, assuming the buyer and seller are acting prudently and knowledgably.

Economic conditions within the local real estate market influence the selling price of property. To ensure fairness, all assessments are based on the market value of the property as of July 1 of the previous year, and on the physical condition of the property as of December 31 of the previous year.

3. How is the assessment determined?

Alberta legislation requires that real property assessments be based on market value. Assessed values are determined using the three accepted methods of valuing real property; the cost approach, the income approach, and the sales comparison approach.

The assessment department evaluates properties based on any factor that could influence the market value such as age, lot size, location, building size, and numerous other factors. The calculations are performed using a computer-assisted mass appraisal program.

To ensure fairness and accuracy, the provincial government performs an annual audit to review property assessments.