Market Value Based Standard
KEY CHARACTERISTICS OF MARKET VALUE
- 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.
The market value based standard is used to determine the assessed values for the majority of properties in Alberta. 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.
Not all property is assessable for property tax purposes. The Municipal Government Act outlines what property is assessable for taxation.
The act defines property as:
- A parcel of land
- An improvement
- A parcel of land and the improvements to it
- Publicly owned infrastructure or equivalent privately owned facilities
- Property in Indian reserves
- Property in Metis settlements
- Growing crops
Some properties are assessable, but not taxable. Properties that are assessed but then exempted (in whole or in part) from taxation include:
- Most farm residences and improvements
- Environmental, municipal, and school reserves
- Government properties such as hospitals, libraries, and schools
- Colleges and Universities
- Privately operated schools
- Churches and cemeteries
- Property owned by some non-profit organizations such as benevolent societies, boys’ and girls’ clubs, etc.
City of Lloydminster Property Tax exemption form.