The Municipal Government Act sets out two types of valuation standards to value property for assessment and property taxation purposes in Alberta:
- Market Value Based Standard
- Regulated Procedure Based Standard
Market Value Based Standard
The market value-based standard is used to determine the assessed values for the majority of properties in Alberta. For the Market Value Based Standard this works though the use of Market Value and Mass Appraisal.
Regulated Procedure Based Standard
Alberta Municipal Affairs prescribes rates and procedures to assess these types of properties, which are referred to as “regulated property”. Rates and procedures are determined by what a type of property is used for, its activity, or its production capability.
There are four types of regulated property:
After the assessed value of a property has been determined, the property is assigned an assessment class. This is an important part of the assessment and taxation process. The assessment class determines the tax rate that will be applied to each property, as assessment classes may have different tax rates. Property is classified according to its actual use. The classes are set out in the Municipal Government Act.
Legislated Assessment Dates
In Alberta, there are two key legislated dates by which certain assessment processes must be complete—the valuation date and condition date.