Market value is the price a property might reasonably be expected to sell for if sold by a willing seller to a willing buyer after appropriate time and exposure in an open market.

Key characteristics of market value are:

• It is the most probable price, not the highest, lowest, or average price.
• It is expressed in terms of a dollar value.
• It assumes a transaction between unrelated parties in the open market.
• It assumes a willing buyer and a willing seller, with no advantage being taken by either party.
• It recognizes the present use and potential use of the property.

Farmland is assessed on the basis of its productive value; that is, the ability of the land to produce income from the growing of crops and/or the raising of livestock. The productive value of farm land is determined using a process that sets a value for the best soils, and then makes adjustments for less-than optimum conditions such as stones, the presence of sloughs or topography.

Machinery and equipment includes such things as underground tanks, separators, fuel gas scrubbers, compressors, chemical injectors, and metering and analysis equipment. Machinery and equipment is used in conjunction with properties such as refineries, chemical plants, pulp and paper plants and oil sands plants.

These properties have distribution lines or other facilities, and may cross municipal boundaries. Linear property includes:

• Oil and gas wells
• Pipelines to transport petroleum products
• Electric power systems (generation, transmission, and distribution facilities)
• Telecommunication systems (including cellular telephone systems)
• Cable television systems

Linear property is assessed by the assessor designated by the Minister of Municipal Affairs.

Some examples of this are:

• houses
• cottages
• garages
• acreages
• yard sites

This is largely industrial and commercial property.

• Farmland is land used for producing agricultural products such as crops, fish, livestock, poultry, fur production or bee keeping
• This is only the case where an agricultural product is marketed

Some examples of this are:

• Oilfield plants
• batteries
• satellites
• Equipment used for processing and manufacturing.

This includes:

• Wells
• Fowlines
• Pipelines
• Powerlines
• Electrical and power generating equipment.

The valuation date is a fixed point in time at which assessment values are based. The valuation date ensures that all properties in a municipality are valued as of the same date. The valuation date set by the Municipal Government Act is July 1. For example, for the 2021 tax year, the valuation date for property assessment is July 1, 2020.

The second legislated date in the valuation process is the condition date. The condition date is the date on which the condition of the property is recorded for property assessment purposes. Under Alberta legislation, the condition date for property other than linear property is December 31.