Assessment Classes

Properties in Alberta are classified as either residential, non-residential, farmland, linear, or machinery & equipment. Some properties have more than one class. The sub-classes of property are detailed below. When reviewing your assessment, you should check the classification of your property to ensure that it is properly described. RESIDENTIAL PROPERTIES: Residential properties are assessed at market value, as of July 1st of the year preceding the assessment and taxation notice. Market value is determined by analyzing the sales of all property types throughout the County. Mass appraisal techniques are used in this valuation process. Since assessment reflects mid-range sale values, the assessment may be slightly higher or lower than an actual sale price on a particular property. The Alberta Provincial Government regulates that the assessment ratio, the ratio of the assessment to an indicator of market value for a property, for all residential properties be 95 to 105 per cent for the median assessment ratio. NON-RESIDENTIAL PROPERTIES: The Non-Residential category of property refers to industrial and commercial operations, such as industrial plants, gravel pit operations, service stations, meat processing facilities, stores, etc. Properties that have a multi-purpose use, such as a commercial business operating from a residential acreage, will have the commercial portion of the assessment classed as non-residential. Non-residential land, buildings and structures are assessed at market value as of July 1 of the year proceeding the tax year. LINEAR PROPERTIES: Linear properties include electric transmissions lines, telephone and telecommunications equipment, oil and gas wells, pipelines, towers, power generation and cable. Linear property is assessed by provincial assessors using regulated rates and depreciation schedules which apply specifically to this property. *The Red Deer County collects these taxes on behalf of Alberta Municipal Affairs. MACHINERY AND EQUIPMENT: Machinery and Equipment (M&E) that is used for processing or manufacturing is assessed at the stipulated regulatory level as per the 2013 Minister's Guidelines. This category includes properties such as gas plants, gas and oilfield installations, manufacturing facilities, etc. FARM PROPERTIES: Farmland is assessed on the ability of land to produce agricultural products. The 2013 Minister’s Guidelines in conjunction with the Alberta Farmland Assessment Manual has been utilized to prepare farmland assessments. Farm buildings are exempt from assessment and taxation as long as those buildings are only being used for farming purposes. Farm properties often contain several assessment classes. If the property contains a residence, then the residence along with the first 3.00 acres will be assessed at market value, as if it were a 3.00 acre subdivided parcel. These values are classified as residential on your notice. If there is a commercial or industrial/oilfield operation on the property, all buildings and improvements and the land area used for the operation will be assessed at market value and classified as non-residential (see above). If there is M&E used in these operations, the M&E will be classified as M&E (see above). *The Guide to Property Assessment and Taxation in Alberta was written to provide general information about the province’s property assessment and taxation system. This guide will be helpful for anyone who wants or needs to have an understanding of how the province’s property assessment and taxation system works.

Guide to Property Assessment and Taxation

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1. How Property Taxes Are Determined
2. Understanding Your Assessment
3. Assessment Classes
4. Assessment Inspections
5. Property Ownership Changes
6. Manufactured Mobile Home Parks
7. Filing A Complaint On An Assessment
8. Education Property Tax
9. Senior's Financial Assistance