Property assessment in Alberta is based on a combination of market value and regulated rates. Residential and some non-residential properties are assessed at market value. Farmland, machinery and equipment, and linear properties are assessed using regulated rates determined by the Government of Alberta. Regulated assessment comprises approximately 28 per cent of the assessment base

For assessment purposes, property is divided into five classes:

Residential property: houses, cottages, garages, acreages, yardsites

The assessed value of residential property should approximate the average market value as of July 2010. Since assessment reflects mid range sales values, it may be slightly higher or lower than an actual sale price on a particular property.

Non-residential property: industrial, commercial

Industrial/commercial properties are also assessed at the average market value as of July 2010.

Farmland: land used for producing crops, fish, livestock, poultry, fur production or beekeeping (where an agricultural product is marketed)

Farmland is assessed based on regulated rates which reflect top farmland at $350 per acre and less productive land at a percentage thereof. As in the past, there is little change to the 2010 farmland assessment for 2011 taxation

Machinery and Equipment: oilfield plants, batteries, satellites, and equipment used for processing and manufacturing

Machinery and Equipment is assessed based on depreciated regulated replacement cost rates. These rates are derived from a Provincial Assessment Manual.

Linear Property: wells, flowlines, pipelines, powerlines and electrical power generating equipment

Linear property is assessed by Provincial Assessors using regulated rates and depreciation which applies specifically to this property class. Each year the power portion of linear property assessment declines in accordance with regulated depreciation schedules.

If you have questions regarding regulated rates used on farmland, machinery and equipment or linear property, you may contact Alberta Municipal Affairs at 780-422-1377 or visit their website.