Applicable Regulations

 

Standards of Assessment Regulation (AR 365/94)

 

This regulation provides the valuation standard for assessing all property in Alberta.

 

The valuation standard for a parcel of land is market value (section 2(1)(a) or AR 365/94) except those lands stated in section 2(1)(b) of AR 365/94 which are lands used for farming operations.

 

The valuation standard for improvements is:

 

a) depreciated replacement cost

b) market value

 

No matter which standard is used, the final assessment must correlate to market value.

 

The definition of market value in the MGA is qualified by the Standards of Assessment Regulation (AR 365/94) section 11:

 

"An assessment of property based on market value or depreciated replacement cost

 

(a) must be prepared using mass appraisal,

(b) must be an estimate of the value of the fee simple estate in the property, and

(c) must reflect typical market conditions for properties similar to that property."

 

AR 365/94 provides guidance for the preparation of assessments at market value. The principles and wording used in this regulation are based on standards established by credible organizations that have many years of experience in applying market value assessments.

 

There are key terms that are found in most of not all assessment standards. Terms such as "mass appraisal" techniques and valuing the "fee simple interest" are not unique to Alberta and are well established standards.

 

The Standards of Assessment Regulation (AR 365/94) for other specific types of property either mandates or allows an assessor to use a valuation standard other than market value as follows:

 

• Property to be Assessed Assessment Standard
• Land used for farming operations Agricultural use value
• Railway Regulation - Schedule 1 of AR 365/94
• Linear property Depreciated replacement cost
• Machinery and equipment Outlined in section 7(2) of AR 365/94

 

This is the basis for a number of guidelines issued by Alberta Municipal Affairs including:

 

• Alberta Linear Property Assessment Minister's Guidelines
• Alberta Farm Land Assessment Minister's Guidelines
• Alberta Machinery and Equipment Assessment Minister's Guidelines

 

The regulation also sets out quality standards (Schedule 2) and the information to be recorded (Schedule 3) when preparing assessments.

 

For additional information regarding assessment details for your property contact the assessor at the MD of Taber Office (403) 223-3541