The new methodology will be based on publicly available data.
As part of the ongoing Assessment Model Review (AMR), the Government of Alberta has introduced a new methodology for calculating assessment year modifiers (AYMs). The new methodology will be used for the 2025 fiscal year.
AYMs are intended to adjust the base construction cost of properties assessed using the regulated assessment model the “close the gap” between costs used in the models, developed in 2005, and actual current-year construction costs. Previously, AYMs were developed by a consultant and based on proprietary information, which limited transparency and left the methodology open to possible political- or economically-motivated changes.
The AMR steering committee, which consists of a combination of municipal and industry stakeholders (including RMA) reached consensus on the new AYM methodology, which was developed in a way that increases transparency by relying on publicly available data, and limits year-to-year shocks by utilizing a three-year average. RMA’s support of the new methodology was conditional on an assurance that it would be used on an interim basis during the years that the AMR process updates rates for specific property types, and will be further updated at the conclusion of the AMR process to reflect the new methodologies and approaches developed for specific rates.
The detailed methodology was shared directly with municipalities earlier this month.
Jared Shaigec
Policy Advisor
825.319.2312
jared@RMAlberta.com
Wyatt Skovron
General Manager of Policy & Advocacy
780.955.4096
wyatt@RMAlberta.com