Assessment Definitions



What is Market Value?

Market value is the most probable price that a property would sell for on the open market as of a given date.

For assessment purposes an assessor reviews and measures the real estate market on July 01 of the previous year in which a tax is imposed with consideration to the physical attributes and condition of your property as of December 31 of the previous year.

The MGA defines market value in Section 1(1) of the MGA as follows:

(n) “market value” means the amount that a property, as defined in section 284(1)(r), might be expected to realize if it is sold on the open market by a willing seller to a willing buyer;

This definition would make the following assumptions:

  • sufficient exposure time in the market
  • neither buyer or seller are under any undue pressure
  • both buyer or seller are well informed
  • payment for the property is typical for the market

Physical Attributes

Assessors determine property values using similar variables that real estate agents and appraisers use to establish the value of a property. These variables or property characteristics include:

  • Record of all property sales for similar properties in similar areas
  • Style of building (examples: bungalow, bi-level, store, shop)
  • Size of lot
  • Size of building
  • Year built
  • Basement finish, upper floors
  • Garage (examples: size, detached, or attached)
  • Exterior finish Building condition
  • Type of roof
  • Fireplaces, air conditioning, or other special features
  • Site or location influences (examples: golf course, lake, park, ravine, river valley, commercial, institutional, multi-family, traffic)
  • Outbuildings

Mass Appraisal

As outlined in the Matters Relating to Assessment and Taxation Regulation AR220/2004, mass appraisal is defined as follows:

1(k.)“mass appraisal” means the process of preparing assessments for a group of properties using standard methods and common data and allowing for statistical testing.

Residential

As outlined in the Municipal Government Act residential is defined as follows:

Part 9 Division 1 section 297

(4) In this section,

(c) “residential”, in respect of property, means property that is not classed by the assessor as farm land, machinery and equipment or non-residential.

 

Non-Residential

As outlined in the Municipal Government Act, non-residential is defined as follows:

Part 9 Division 1 section 297

(4) In this section,

(b) “non-residential”, in respect of property, means linear property, components of manufacturing or processing facilities that are used for the cogeneration of power or other property on which industry, commerce or another use takes place or is permitted to take place under a land use bylaw passed by a council, but does not include farm land or land that is used or intended to be used for permanent living accommodation;

 

Farm Land

As outlined in the Municipal Government Act , Farm land is defined as follows:

Part 9 Division 1 section 297

(4) In this section,

(a) “farm land” means land used for farming operations as defined in the regulations;

 

Machinery and Equipment

As outlined in the Municipal Government Act , Machinery and Equipment is defined as follows:

Part 9 Division 1 section 297

(4) In this section,

(a.1) “machinery and equipment” does not include

(i) any thing that falls within the definition of linear property as set out in section 284(1)(k), or

(ii) any component of a manufacturing or processing facility that is used for the cogeneration of power;

Agricultural Use Value

As outlined in the Matters Relating to Assessment and Taxation Regulation AR220/2004, agricultural use value is defined as follows:

  • the value of a parcel of land based exclusively on its use for farming operations.

 

Farming operations

As outlined in the Matters Relating to Assessment and Taxation Regulation AR220/2004, farming operations is defined as follows:

1(i.)“farming operations” means the raising, production and sale of agricultural products and includes

i.) Horticulture, aviculture, apiculture, and aquaculture,

ii.) The production of horses, cattle, bison, sheep, swine, goats, fur bearing animals raised in captivity, domestic cervids within the meaning of the “Livestock Industry Diversification Act”, and domestic camelids, and

iii.) The planting, growing and sale of sod.