Property Assessment

1. Assessment is the method used to calculate property tax in all Alberta municipalities and is an annual process. Assessment is based on market value as measured by the real estate marketplace according to property sales in the area.

2. Assessment provides an open and objective basis for allocating taxes required to operate Town services and programs and pay the Province for education funding requirements. 

3. An increase in an individual assessment does not equal a proportional tax increase. For example, a 14% assessment increase does not equate to a 14% tax increase. Your assessment determines your property's share of the total community tax. The tax allocation is based on a property’s value as a portion of the total value of all properties in the community.
 

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4. Taxes are calculated by multiplying the assessed property value by the tax rate. Tax increases are determined by the municipal operating budget process and education tax requirements by the Province. Assessment doesn’t determine tax rates. This is the taxation formula that is used by all Alberta municipalities.

5. Municipal tax is paid in relation to property value and is not an account of services rendered to each individual property. To learn more about how the role your assessment plays in property taxes, visit the budget page.

Property Assessment is the basis for allocating each property’s share of the total community tax. Assessment is based on market value estimated as of July 1 of the previous year. 

 Assessment Process Timeline

By sending property assessment notices in advance of the property tax notices, owners have the opportunity to review their assessment and raise any concerns they may have about their assessed value before taxes are calculated.

This search tool, found at the link below, allows you to view basic assessment information relating to any residential property in town. You should compare your assessment to the assessments of other properties similar in size, age, quality, condition and location. 

Conduct a property search 

1. What is property assessment based on? 
Property assessment is based on a market value standard estimated as of July 1 of the previous year, as measured by the real estate marketplace according to property sales in the area. Assessment applies similar criteria that real estate appraisers use when valuing properties for mortgage lending purposes and pricing properties for sale. Data considered includes:

• total finished living area above and below grade
• age of structure, condition
• renovation level
• building type (i.e., single-family dwelling, duplex, etc.)
• structure type (i.e., bungalow, two-storey, etc.)
• unit type in condominiums (i.e., townhouse, apartment, basement unit, etc.)
• type and size of garage
• lot size
• positive and negative influences (e.g., traffic, golf course, lake, greenspace, views)

2. What is the objective and purpose of property assessment? 
The objective is to provide a basis for distribution, or allocation, of taxes required to operate the Town and pay the Province for education funding requirements. The purpose is not to reflect one sale price, but to assess all similar property at a similar value so that taxation is fairly and uniformly distributed among all taxable property.  

3. Market Value Assessment Standard
Assessed market value is calculated by incorporating legislative provisions that utilize mass appraisal principles. Mass appraisal is the process of valuing groups of properties. Market value standards mean the median assessment in each group is on the median purchase price.

4. Why is the assessment valuation date last July? 
This is a provincial statutory requirement that allows all assessors to annually analyze and evaluate market and sales data and prepare values prior to mailing assessment notices. All properties are assessed with the same effective date so all assessments are updated at the same time.    

5. Why use a market value standard? 
The market value standard is a legislated and regulated valuation standard based on the premise that the amount of tax a property can pay is directly proportionate to the value it is worth. Market value standard generates values that can be objectively and readily compared for fairness to open market sales activity.  

6. How is the assessment system an open and accountable process? 
The assessment roll is available for anyone's review and values are posted on the Town website. The assessment roll is submitted every year to the Province for independent review and audit. Owners can see and compare assessments in addition to right of appeal.  Property characteristics compared against other properties that have sold in order to calculate a value. Characteristics such as location, age, size and others are considered. 

7. Why are assessment valuations prepared on an annual basis? 
To quickly reflect shifting values relative to the norm, or each other. To ensure no given property type or area is penalized with assessments too high when its value may have dropped, or not have increased to the extent of other properties. Property tax levies are always adjusted to municipal revenue requirements.

8. If reassessments are not a means for generating more tax revenue why are properties valued so frequently? 
The intent of reassessing properties is to retain the competitive placement of each property in the community hierarchy. Reassessment reflects differing value change rates and ensures all properties are retaining their fair respective slice of the entire Town assessment pie.  

9. How much accuracy is there to assessed values?
Assessed values should not be viewed as an absolute number. Real estate valuation is based on market observations and comparisons. The market is an imperfect environment and not a controlled structured setting.  

There is a range in price purchasers will offer and a range that sellers will accept.  So there is a transaction zone for every property transaction. Differing property types will have varying tolerances to an actual deal. In addition, to ranges inherent to individual deals, assessed values are generated on a mass basis which indicates precision to assessed values is less than 100%.

Provincial Audit standards require that the Average Assessment within a competitive group is to be within 5% either higher or lower than the average sale price within that group, and the range within a set of comparable sale properties can well exceed 10%. Generally Assessment Complaint tribunals will not consider adjusting an assessment where the request is for anything less than 5%. 

The resulting tax effect on assessment differences is minor as tax rates are very low relative to value. For illustration of tax influence on a 10% assessment range consider the following example:

$500,000 assessment x 0.75% tax rate  =  $3,750 tax
Change by 10% difference
Compare $550,000 assessment x 0.75% tax rate  =  $4,125 tax
10% Difference                                                           $375 per year or $31/month
A 5% difference equates to                                      $188 per year or $16/month

10. How are sizes calculated? 
Sizes come from original building construction plans and are reviewed or updated with periodic update inspections. 

11. How are lot sizes calculated? 
Lot sizes come from plans of subdivisions registered at the Land Titles Registry. 

12. How are assessed values kept fair and reasonable? 
Assessed values are determined based on comparisons made of each property’s characteristics to similar properties which have sold. 

13. How do renovations or additions affect my assessment? 
Assessment is based on typical market value, so any significant changes such as additions or garages that influence value will affect assessment. 

14. How many properties are assessed each year in Okotoks?  
Over 12,000 properties assessed each year. 

15. I purchased my property very close to the effective valuation date so how can my assessment be higher? 
Some assessments will be higher and some will be lower, but on average the median assessment is expected to be on the median sale price of similar properties. A lower purchase price at time of the effective date of the assessment may indicate a good buy when compared to its competitive group.     

Assessment values incorporate mass appraisal methodologies, which use a common valuation approach and data to develop typical valuations. Similar properties will have a range in prices.  Sale prices may be at the upper or lower end of the range. A property’s sale price can occur outside the range, but the assessment can still meet legislated standards.

16. I have an appraisal report prepared by a professional independent appraiser who is certified by the Appraisal Institute of Canada, why does their appraisal indicate a lower value?   
Check the purpose and function of the report, the effective date of the valuation, interest valued, and limiting conditions regarding use of the report. If those match assessment parameters, with an effective date close to July 1, then it would be appropriate to send a copy of that report to the assessors for discussion.  

17. What if my real estate agent thinks the assessment is too high?
Although realtors have access to good sales data through the multiple listing services (MLS), there are a significant number of properties that do not sell through the MLS system and are included in the assessment analysis. 

Keep in mind that real estate agents are professional facilitators with vested interests in the wellbeing of their clients. Their role is to represent their clients in purchase and sale agreements to the best of their ability. They are not bound by any assessment standards or appraiser objectivity, responsibilities, tests, or reporting requirements. If you need more information, please refer to the Alberta Real Estate Act.

18. What would cause my assessment to increase more than others in my area? 
If there have been no significant improvements to the property such as additions, or garage, etc., an increase greater than the norm indicates the reassessment objective is working.  Updated property sale data indicates that market participants are now prepared to pay proportionately more for your property type, and, or, location compared to others.  

19. Why has my assessment increased when general market decreased? 
There are a number of factors that go into determining assessed values.  A variety of changes including extensive renovations, basement development, garages, additions, fireplaces, etc. can alter assessed value. 

The assessed value is determined through an analysis of properties that have sold. Different neighborhoods or dwelling types may appreciate or depreciate in value at different rates year to year. 

20. Why is my property assessment higher than my neighbours?  Consider: 

• Are both properties similar in type (two story vs bungalow)? 
• Are they the same size? 
• Are the lot sizes similar? 
• Are there location or amenity differences? 
• Are they similar in age or have there been additions, renovations? 
• Do both properties have garages or basement development? 
• Does the neighbor border main traffic corridor? 
• Any or all of these factors can influence assessed values 

21. Does an annual assessment system create a disincentive for improving my property? No it doesn't, and this is why:

• The ratio of tax to value is extremely low; typically around 1 per cent. 
• Many improvements will not increase the assessed value. 
• It takes a great deal of capital expenditure to increase an assessed value. 
• The improvements must be significant to that of adding space or increasing the building class. 
• The cost of making improvements to existing buildings will not add proportionately dollar for dollar to assessment value, as the assessment is based on comparisons of sale prices of similar property. 

22. Is there notice of residential property inspections?
Yes, Section 294 of the Municipal Government Act indicates that assessors have the right to enter and inspect property for the purpose of preparing an assessment after providing notice (assessors will have Town identification).  Properties are inspected on five year cycles.

Assessors collect data from inspections, plans, permits, property owners, land titles office, listing services, etc. in preparing assessments. 

If residents are not home and more information is required, a call-back card may be left to make an appointment. Assessors will continue property inspections throughout the year. For more information, contact an Assessor using the contact information at the bottom of the webpage.

• Property assessment allocates each property’s share of the total community tax levy. The allocation is based on a property's value as a portion of the total value of all properties in Okotoks. The amount your assessment changed will affect the tax bill compared to the average market value change.
   
• Taxes are calculated by multiplying the assessed value by the tax rate, set by Council, usually in April of each year after the province has decided on the education tax that the Town must provide to them.

• Town Council sets the annual budget based on services the community requires. The budget determines the total taxes needed to pay for approved services and programs in addition to provincial education funding requirements.
• An increase in an individual assessment does not equate to a proportionate tax increase.
• Property tax will increase because of increased Town operating budget and/or increased requisitions from the Province for education funding.
• The assessed value only allocates each property’s proportionate slice of the total community assessment and thereby the total tax pie.

Review this video for a description of how assessment is connected to taxes.
Assessment/Taxation Connection

1. Why are assessment notices mailed before property tax bills?
Assessment notices are mailed in advance of the property tax bills to allow property owners the opportunity to review the assessed value and ensure it is reasonable prior to the tax bill being sent out in May.

2. When are Property Tax bills mailed?
Council sets the tax rates after the province has made its education tax requisition to the Town in April. Tax bills are typically mailed mid-May with deadline for payment in June.

3. How can school tax support declaration be changed?
For information about changing school declaration, please visit the Tax page and scroll to School Declaration tab.

4.Will an increase in assessment equate to an increase in tax?
​No. An increase in assessed value does not directly equate to a tax increase. 

• Tax might increase, but it is not because of increased assessment.
• Assessment does not determine tax rates. Only Town Council has authority to levy municipal tax.
• Property taxes are dependent on, and are a function of,  Town Operating budgets and Provincial request for education funding.
• Taxes will increase because of increased Town operating budget and/or increased requisitions from the Province for education funding.
• The assessed value only allocates each property's proportionate share slice of the total tax pie.

5. If my  tax increases will the level of my municipal services also increase?

The amount of tax allocated to each property is correlated with value not services. Municipal tax is exactly that; a tax.  It is not a fee for services rendered on each individual property.  It is a tax levied in relationship to value.  Municipal tax paid is akin to income tax, which has no direct relationship, to services rendered for each taxpayer.  Municipal tax paid is in relation to the property value and is not an accounting of services rendered to each individual property.

Town Council approves the budget based on the expenditures required to support Town services and programs. From this amount, sources of revenue other than property taxes, such as user fees and provincial grants, are subtracted. The balance is the amount raised by property taxes.  

A change in your property assessment does not necessarily mean a change in your property taxes. If your property assessment has increased more than the average, you will likely see an increase in your property taxes more than the average. If your property assessment has increased less than the average, you will likely see a decrease in your property taxes. 

If your assessed value stays the same or increases the same as most others
If your portion of the pie stays the same from one year to the next and if Council does not require additional revenue, your property taxes will stay about the same.

If your assessed value increases more than others
If your portion of the pie increases relative to the total pie, even if Council does not require additional revenue, your property taxes will increase.  

If additional revenue is needed and assessed share stays the same (or increases)
If Council determines additional revenue is required to fund Town services and if your assessed share stays the same (or increases), you will see an increase in tax in the amount of tax revenue increase approved by Council.

The 60 day assessment inquiry period lasts until mid-March. This is the timeframe in which complaints can be made.

1. What if I have a concern or believe there is an error on my property assessment notice?
To make an appointment with an assessor use the contact number at the bottom of this page or click the button below:

Contact Us

2. How do I file a complaint?
Provincial legislation and Town bylaws outline how complaints must be made.  The complainant must be submitted in writing using the Government of Alberta form. Please visit their Municipal Property Assessment complaints and appeals website for more information and to access their forms:

Municipal Property Assessment - Complaints & Appeals 

It is important that all questions be answered on the complaint form that are relevant to your property, including:

1. What information on the assessment notice is incorrect; please identify specific issues and provide grounds in support to the Assessment Review Board for review.
2. The requested assessed value, if the complaint relates to an assessment.
3. Be sure to include a statement specifying the date and outcome of discussions with the assessor including details of any issues or facts agreed to. If you have not discussed the matters of the complaint with an assessor, specify why a discussion was not held. You may attach additional information to the complaint form if the space provided is insufficient.
4. An Assessment Review Board cannot hear any matter in support of an issue that is not identified on the complaint form.
5.  Include your mailing address.
6. Should you have an agent file a complaint on your behalf, you must complete and sign the Assessment Complaints Agent Authorization form provided by the Government of Alberta. You can access that form at the link above.
7. Your complaint form must be accompanied by the appropriate filing fee or the complaint will be invalid.
8. Incomplete forms, complaints submitted after the final date of complaint, or complaints without the required filing fee are invalid.

3. How much are complaint fees?
Complaint fees for the assessment complaint process are as follows:

Residential: 3 or fewer dwellings and farm land under one roll number - $50 per complaint
Residential: 4 or more dwellings - $325 per complaint
Non-residential: $650 per complaint

Complaint forms and fees may be dropped-off or postmarked on or before the final date of complaining to:
Town of Okotoks
5 Elizabeth Street, PO Box 20
Okotoks, AB   T1S 1K1. 

For further complaint process information, contact the Assessment Review Board Clerk.

4. Working with a Tax Agent
Should owners wish to retain assistance of others, there is a manner required by the municipality to have Assessment Services recognize non-owner representation.  Specific requirements to have a tax agent recognized include:

• Absolute clarity that the request for agent representation is being made by the property owner, as indicated on the Certificate of Title registered at Land Titles office. Only one agent represents a property. 
   
• Tax agency representation cannot be established for the registered owner by non-owner third parties, such as tenants, licensees, franchisees, permittees, third party property managers, or any other non-owner. 
   
• If the property is corporately owned, an authorization prepared by a director, as recorded in the Alberta Corporate Registry system, is fine. The authorization must be prepared on owner letterhead and follow the required Letter of Agency Authorization template which identifies pertinent information and clarifies the scope to the owner’s authorization. Creating an agent authorization is an annual process and it is valid for the entire taxation year.   
   
• Owners will have complied with all assessor requests for information made the previous year. 

The Residential Data Verification form will help ensure that Assessment Services has the correct data on each property.  This will allow us to prepare accurate market value assessments on individual properties.  The form will ensure that all property data is current, including any renovations, so that all owners pay only their “fair share.”  The form also allows homeowners to contribute to the property assessment process and become aware of the factors that may influence market value property assessments.  Please fill in the form by clicking the button below.

Residential Data Verification Form

As a property owner, you are entitled to see or receive sufficient information about your property and a summary of any assessment in accordance with sections 299 and 300 of the Municipal Government Act. 

Before you submit a form and begin with this request, we recommend using our Property Search tool. This search allows you to view basic assessment information relating to any residential property in the town. 

If you feel the information provided through the search tool and speaking with an assessor is not sufficient, a 299 or 300 request can be made in writing directly to Property Assessment, using the following forms:

Section 299: Owned Property

Section 299 Request for Information Form

Section 300: Other Property

Use this form to request summary assessment information about your property and for other properties (maximum of 5) that may not be available on the Town of Okotoks website.

 Section 300 Request for Information Form