During the period of ownership, many property owners routinely wonder:
(1). How are property assessments generated?
(2). Is the property assessment fair?
(3). What is the process for dispute?
(4). What are the odds of being successful if a property assessment is contested?
(5). What are the risks (i.e. personal time and cost incurred) with proceeding to appeal an assessment?
The Municipal Government Act is the applicable legislation for property assessments in Alberta. For a more useful reference, open the link below to review a Guide created and distributed by the Province of Alberta:
< Guide to Property Assessment and Taxation in Alberta >
In this guide the following topics are discussed and explained:- A brief history of property assessment and taxation
- What is property assessment?
- Relationship between property assessment value and property taxes
- The Alberta model of property assessment and taxation
- Market value standard
- How market value is determined
- Regulated standard
- What is assessed?
- Who prepares assessments in Alberta?
- How assessments are prepared
- Valuation and condition dates
- Inspections
- Property owners' rights to assessment information
- Assessment classes
- Assessment roll
- School support declarations
- Assessment notices
- Assessment complaint system
- Assessment review boards
- Municipal property taxation
- Education property taxes
- Other taxes
- Further information
When developing City assessments, the primary purpose is not to develop the most accurate estimate of what a property would sell for in today's market, but rather it is to distibute tax burden in an efficient manner for which the collections pay for the muncipality expenses. The high majority (if not all) of muncipalities never enter inside the property. This means properties with substantial upgrades have lower City assessments that do not take into account everything inside that increases value, and conversely high assessments are common for properties with major structural or water issues inside that are not visible from the exterior. For this important reason (and many others) it is essential when selling property to contact a reputable REALTOR® to provide you with a market evaluation and not simply rely on the City's assessment that could easily be wrong by tens of thousands of dollars (in both directions). For more information, open and review Kelly's related article below:
< Why REALTOR® Property Evaluations are Essential when Selling >
[Article written and ©2021 by Kelly Grant, M.Eng., ABR, NCSO, P.Eng. - REALTOR® at MaxWell POLARIS in Edmonton, AB]
Disclaimer: for those readers not currently represented by another licensed REALTOR®, to obtain more information on this topic and / or if you will be selling or buying in the Greater Edmonton Area, call Kelly at 780-414-6100 (pager); text Kelly at 780-717-9290 or send Kelly an email to SOLD@KellyGrant.ca to schedule a confidential appointment.