Assessment is the process of estimating a dollar value on a property for taxation purposes. This value is used to calculate the amount of taxes that will be charged to the owner of the property.
Assessments for all types of property are prepared by accredited municipal assessors which are appointed by the City. Assessors obtain required information through many means including site inspections, building permits and blueprints, sales data from Alberta Registries, and by written request.
Note: For residential and non-residential property, your 2016 assessment is based on the estimated market value of your property on July 1 of last year and any physical changes up to December 31 of last year.
The Market Value Approach
In Alberta, residential and most commercial property is assessed using the market value approach. Market value is defined as the price a property might reasonably sell for after adequate time and exposure to an open market when sold by a willing seller to a willing buyer.
The assessor will consider the same factors that any other real estate specialist would use when determining the value of a property. Assessors can readily check assessments by making comparisons with recent sales and assessments of similar properties in the neighbourhood.
For residential properties, these factors include:
- lot and home size
- finished basement
- construction quality
- number of bathrooms
- historical and current sales prices
- et cetera
For multi-family (apartment) and commercial properties, these factors also include income and expense information. These types of properties are bought and sold based on the rental (lease) income they produce and therefore property owners may be requested to submit this information to the assessor.