Assessment and Taxation FAQ
- We heard that the average residential assessment decreased by 1.7%. What affect will that have on my property taxes?
- Why does the City of Edmonton base its assessments on the market value of properties?
- I filed an assessment complaint last year and received a reduction in my assessment from the Assessment Review Board. Why isn't that reduction reflected in my new assessment?
- When overall property values decrease, does this automatically mean the City receives less tax revenue? And do my taxes go down?
- What, exactly, is a tax rate?
- What conditions affect overall property tax revenues?
- 1. We heard that the average residential assessment decreased by 1.7%. What affect will that have on my property taxes?
In Edmonton, single family homes decreased in assessed value by an average of about 1.7% from the previous year. Condominiums, townhouses and manufactured homes decreased by about 1.9%. Apartment buildings increased in value by about 0.5%.
Residential properties that changed in assessed value by the same rate as the average of all properties will see an overall municipal tax increase of about 5.39%. Residential properties whose assessed value decreased more than the average of all properties will see a property tax increase less than 5.39%. Residential properties that saw their assessed value decrease less than the average of all properties or increase in value will get a tax increase more than 5.39%.
Property owners should note that the increase or decrease in the education tax portion of their property tax bill will also depend upon the amount of the increase or decrease in the provincial Education Property Tax Requisition sent to the City by the Alberta Government. The City is required by provincial legislation to use property assessment to calculate your share of the revenue required to pay the provincial government for education property tax purposes. The City collects this revenue and remits it directly to the province.
- 2. Why does the City of Edmonton base its assessments on the market value of properties?
In the late 1990s, the provincial government implemented market value assessment for all municipalities in Alberta. The City of Edmonton moved to the new market value standard in 1999. The market value system is the most widely accepted approach to property taxation throughout the world. Simply put, market value assessment is the probable price that a property would sell for on the open market on a given date.
- 3. I filed an assessment complaint last year and received a reduction in my assessment from the Assessment Review Board. Why isn't that reduction reflected in my new assessment?
Provincial legislation requires that all municipalities, including the City of Edmonton, determine the value of every property in their municipality each year. The City must revalue all property for assessment purposes reflecting the market value of the property as of July 1. The assessment department takes into account, in the assessment, all attributes that affect the market value of property at that time. If the reduction given by the Assessment Review Board was given for an attribute or any reason that is not reflected in the market place as of July 1, it will not be reflected in the new assessment.
- 4. When overall property values decrease, does this automatically mean the City receives less tax revenue? And do my taxes go down?
No. The City does not get less tax revenue when total property values decrease. Nor does the City get more property tax revenue when the overall property values increase.
The City identifies how much it needs from property taxes to pay for the budget for services and infrastructure. Then the assessed value of your home, as compared to other homes at the same date each year (July 1), is used to determine your share of the total property taxes the City needs.
If your house changed in value the same as the average change for all properties, you will pay the average tax increase needed to pay for the budget increase.
- 5. What, exactly, is a tax rate?
In order to calculate taxes, the City establishes a tax rate (mill rate) to fairly distribute the tax levy among all City of Edmonton properties. The mill rate reflects the amount of taxes to be paid for every $1,000 of assessment:
MunicipalTax Rate = Total revenues required by the City of Edmonton from property tax
Total Assessment
- 6. What conditions affect overall property tax revenues?
Overall property tax revenues are affected in two ways: changes in the city budget requirement and assessment growth from new properties added to the assessment roll (new construction and subdivisions) for the first time.
