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Resolution 24-03F

Assessment of Non-Residential Properties

January 1, 2003
Expiry Date:
December 1, 2006
Active Status:
Vote Results:

WHEREAS differences in the assessment process of non-residential (i.e. commercial and industrial) properties as compared with the linear and machinery and equipment (M&E) exists whereby the non-residential properties are assessed on the basis of market value and the linear and M&E properties are given regulated assessment; AND WHEREAS this is creating assessment and taxation inequities within the non-residential classes, and when extended, to the Alberta School Foundation Fund requisition;

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Government of Alberta to review procedures applied to the linear and M&E properties so as to cease assessment and tax shifts away from the regulated assessment properties toward the market value properties.

Member Background:

Commercial and industrial properties within the non-residential class are assessed at market value. Properties within linear and machinery and equipment classes are assessed and depreciated using regulated rates.While market value increases annually on most commercial/industrial properties, assessments on regulated linear property and machinery and equipment have decreased. This is creating assessment and tax shifts away from regulated assessment to market value properties. To illustrate the point of the shifts, below is the percentage change by assessment class within Leduc County: Assessment Class or Type 2001 to 2002 Percentage Change to Assessment 2002 to 2003 Percentage Change to AssessmentFarmland (Regulated Assessment) -0.1% 0.0%Residential Market Value Assessment +11.2% +9.4%Non-Residential Market Value Assessment +10.9% +13.6%Machinery and Equipment (Regulated Assessment) +0.1% +3.9%Linear Property (Regulated Assessment) -1.5% -2.0%Properties with an assessment based on market value demonstrated increases in the 10% or greater range while regulated properties, specifically the linear and M&E showed much lesser change or decreases.Further assessment and taxation inequities have been created by:1. Removal of the education levy from electric power linear property and machinery and equipment.2. An immediate 25% depreciation is granted to all new assessment additions for machinery and equipment and electric power linear properties.3. All machinery and equipment is assessed at a 77% regulated assessment level.

RMA Background:

The AAMDC has no resolutions currently in effect with respect to this issue.

Provincial Ministries:
Municipal Affairs
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