Property Assessment 101

Times Contributor  

 

Sometimes understanding property assessments can be a confusing business, so Wheatland County Senior Assessment and IT Co-ordinator Dennis Klem gave an interesting and clear refresher course on property assessment as part of his report to council given in Wheatland Council chambers on March 25.

“Don’t get bogged down in all the numbers, it really boils down to four types of assessment,” said Klem. “Keep in mind though that the numbers are a bit of a moving target.”

The provincial Municipal Government Act defines ratings that the assessors use in the formulas set to determine assessments. They are broken down in the county to Farmland, Residential properties, Non-residential and Commercial property (which includes Linear assessments), and Machinery and Equipment.

Farm rates are based on land in use, to produce an agricultural product. This includes crop, forage, tree, shrubs, birds, bees, fish, livestock and sod farms. 

Klem said the residential rates are based in part on market values as of July 1, in the year prior to assessment. This is applied to any complete or progressive building of residential property, and includes any improvements or changes to the property as of Dec. 31. The assessment for residential parcels less than or equal to three acres, represents the average market value for land and improvements on any buildings or structures. For parcels greater than three acres, the assessment includes a minimum of three acres and the residential improvements assessed at market value, and any remaining land is assessed at market value unless it is deemed farmland.

Some ratepayers complain the assessments are too low and don’t accurately reflect their house value. They need to keep in mind that property assessment market values will differ from current real estate market values. Assessment market value rates are based on the prior year, and it is an averaged value of surrounding assessment market values.

Non-residential and commercial properties are those properties where commerce or industrial activity occurs on the property, which includes land, buildings, and structures (i.e., stores, mechanical repair, golf courses, gravel pits, land and structures situated at industrial plants-excluding machinery and equipment) and they are assessed at market value. 

Linear property, a subcategory of non-residential, includes cable distribution (television), electric transmission lines, telecommunication equipment, pipelines, oil, and gas wells, is assessed at a regulated value. The market value is also set by July 1 of the previous year and the type of linear property can alter the assessment rate. Some linear property has its assessment rate set by the province. 

Machinery and Equipment assessments are based on a formula for operational machinery that also takes into consideration the depreciation values of equipment. Any installation used in the processing or manufacturing of a product is classified under this category (i.e., separators or dehydrators or compressors at gas and oilfield installations, certain components at the large grain elevators) and is assessed at a regulated value.

Property assessments can be appealed, but there is a fee to register an appeal. Klem suggested that he can be contacted directly prior to filing an appeal, to discuss any concerns property owners have. There may be some actions that can be made prior to filing a formal appeal. He has the authorization to change property assessments, but not taxes owed.

Taxpayers have a 60 day window to file a complaint or appeal. There have been few appeals launched in the past, but there is a process in place to appeal. See the county website or talk to Klem to get more details.

“I am still interested in hearing about it (ratepayer concerns), even if it is after the appeal deadline, it could be very beneficial for the ratepayer to do that,” said Klem.

Any questions about assessment definitions and where your property fits in can be addressed to Dennis Klem at the Wheatland County office. 403 934-3321.