Market Value Assessment Method
The method used to calculate the value of your property for property tax purposes is called market value assessment (MVA).
According to Government of Alberta legislation, the City is required to update your property assessment annually, based on MVA.
The City’s professional assessors use many of the same features to determine property values as real estate agents use when valuing properties for sale. They consider the selling price of similar properties, and other features such as the dwelling’s age, location, lot and building size, condition, views and proximity to green spaces.
Assessed values are checked at three points in the process:
- By the City’s internal checks and balances.
- By the Alberta Government's annual assessment audit process.
- By individual property owners.
Market Value Assessment
- Since 1995, provincial legislation states that municipalities must use market value assessment to determine each property's share of the property tax requirement of the municipality and the provincial education portion of property taxes.
- This method has been common around the world since the 1970's. It is considered internationally to be the most fair and transparent manner in which to distribute the property tax requirement.
- Property owners can readily see which variables are used to distribute the property tax requirement.
- Market value assessment is a method that reflects the relative economic capacity and ability of property owners to pay taxes..
“Market value is the amount that a property… might be expected to realize if sold on the open market by a willing seller to a willing buyer.”
- Municipal Government Act, Section 1(n), Province of Alberta
Assessment Dates
As provincially legislated, your assessment must reflect the market value of the property on July 1 of the year prior to the year that the assessment is used to determine taxes. This means your 2012 assessment notice actually reflects the market value of your property as of July 1, 2011.
Plus, if you made any physical changes to your property between July 1 and December 31, 2011, the value of these changes is included in the assessment for the 2012 tax year. Such changes may include a new garage, an addition, or a renovation.
