Assessment Model Review engagement

Overview

Based on a plan developed together with municipal and industry stakeholders, we are reinitiating the assessment model review (AMR) and developing a long-term approach to keeping the regulated property assessment system updated.

We want to ensure the AMR process is deliberate, evidence-based and stakeholder-driven from beginning to end. The outcome of the review is expected to result in fairer valuation of regulated property for municipalities and regulated property owners.

Regulated property is difficult to assign a market value to because it rarely trades on an open market. Municipal Affairs prescribes rates and procedures to assess these types of properties. Regulated property types included in this review are:

telecommunications
pipeline
railway
wells
electric power systems
machinery and equipment

Stakeholder engagement

Stage 1: Steering Committee Engagement (2022-2023)

A stakeholder steering committee made up of industry, municipal and assessment representatives designed an engagement process for the broader review, which government has accepted.
Stage 2: Foundational Policy Review (February - December 2024)
Before the assessment models for individual property types can be updated, regulated assessment policies must be revised first.
The steering committee will work with Municipal Affairs to:
- confirm the AMR principles that guide Alberta’s property tax and assessment system to inform any property tax mitigation strategies
- recommend a new methodology for calculating the Assessment Year Modifiers (AYMs) that are used to annually adjust regulated property values
- review the rules for reporting and determining assessable costs, which are currently contained in the Construction Cost Reporting Guide
Stage 3: Assessment Model Reviews: Technical Updates (expected Winter 2025 – Spring 2028)
Assessment models are used to calculate the assessed value of all regulated properties.
We will engage with a technical working group, comprised of subject-matter experts nominated by the steering committee, to update the costs, practices and technologies in the assessment model for each property type.
Property types will be reviewed in 2 groups.
Group 1
When: winter 2025 to spring 2026
Property types included:
- telecommunication and cable
- railway
- electric power property types
Group 2
When: spring 2026 to summer 2027
Property types included:
- machinery and equipment
- pipeline
- wells
Stage 4: Assessment Model Reviews: Engagement on Impacts (expected Summer 2027 through Spring 2028)

Municipalities and industry property owners will have the opportunity to provide input on assessment and taxation impacts, including how to best implement any shifts in assessment.
We expect to have difficult yet necessary conversations about these important issues. The AMR guiding principles developed at Stage 2 will help us make progress by carefully considering concerns raised without losing sight of the end goal.
The steering committee will review the engagement results and provide final recommendations to government.

Outcomes

The AMR process will update Alberta’s regulated property assessment system to reflect current construction costs and methods to promote transparency and stability for municipalities and regulated property owners.