Assessment 101: Riaer Exemption - What is it?
With this year's changes in assessment, we have had many questions regarding assessment notices and tax rates. We understand that some of these things may cause confusion or concern, especially in a situation where values have increased.
To help you better understand some of these changes and alleviate some of your concerns, we will be answering some of the most common questions we have been asked about assessment.
If you have a question that isn't featured or answered on our website, please reach out to us or our assessors at Compass Assessment, and we would be more than happy to help!
Assessment 101: Riaer Exemption - What is it and why is it on my assessment notice?
To put it simply, a Riaer Exemption is an assessment exemption given by the Provincial Government to 'farm residences' ie. residences located on farmland. The farm residence is exempt based on the amount of 'farmland assessment' in the owner's unit. The maximum exemption is $61,540 for the first residence and $30,770 for each additional residence.
You can learn more about this and other farm-related assessment, on our Farmland Assessment page.
Riaer Exemptions are not new and would have been included in every previous assessment notice you have received for a property in Saddle Hills County that had an applicable 'farm residence'.
In prior years, this line was not shown on your assessment notice, although it was included when calculating the total assessment for your property. This year, in order to give landowners as much information as possible about their assessment, this line will appear alongside the other classifications on your assessment, an example of which can be seen below.
This line is purely informational and has not been used to calculate your property taxes owing.
While the Riaer Exemption amount is included in the total assessed value of your property, you do not pay taxes on this portion of your assessment, due to the exemption. You would only pay taxes on the remaining residential land assessment and farmland assessment for your property (lines 1 and 3 on the example).
To calculate taxes payable, you would multiply the applicable property assessment by the tax rate (mill rate) and then divide the total by 1000.
Property Assessment x Tax Rate (Mill Rate) / 1,000 = Taxes Payable
For 2025, the tax rate for Farmland is 13.5 and the Residential tax rate is 3.5.
Using the above example, this would calculate as follows:
$14,500 (Farmland Assessed Value) x 13.5 (Tax Rate) / 1000 = $195.75
$135,800 (Residential Assessed Value) x 3.5 (Tax Rate) / 1000 = $475.30
Total Taxes Payable: $671.05
Should you have any questions about the Riaer Exemption or anything else in your property assessment notice for 2025, please reach out to Compass Assessment, at (780) 469-5552 or info@compassac.ca
Contact Us
Saddle Hills
Junction of Hwy 49 & Secondary Hwy 725
RR1, Spirit River AB
T0H 3G0
T. 780-864-3760
Fax 780-864-3904
Toll-free 1-888-864-3760
frontdesk@saddlehills.ab.ca
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