BARRHEAD - Woodlands County assessors, Accurate Assessment, had some good news for councillors during their April 5 meeting as the ssessment value of properties in all categories have increased.
Residential assessor Kris Meadows said from 2021 to 2022, except for farmland, every land-use assessment category increased in value.
The notable exception is farmland, Meadows said, as it is a provincially regulated assessment and generally does not fluctuate with the market.
Overall assessment increased by 10 per cent to $240,229,150, going from $2,310,539,870 in 2021 to $2,550,769,020.
Leading the way was designated industrial property, which saw a 15 per cent increase, going from $742,939,910 in 2021 to $857,055,910 in 2022, followed by residential at 10 per cent going from $702,476,840 to $770,684,450.
The next highest category seeing an increase was linear property, which jumped seven per cent from $691,523,790 to $738,343,340 and includes oil and gas wells, pipelines and electric power systems.
The other category of note that saw an increase was non-residential property, such as commercial and industrial, which increased by four per cent going from $74,810,610 to $78,054,610.
"Overall, it's good news when it comes to assessment," Meadows said, noting the increases stopped the trend of decreasing values that started in 2018.
As for what that means for individual ratepayers, he said, "A significant number of property owners should see a large increase in their assessments."
Accurate Assessment estimates that about 40 per cent of county ratepayers will see between a one to 10 per cent jump in their assessment, while just over 17 per cent will see a more significant increase of between 10 to 25 per cent and about four per cent will see increases of more than 25 per cent.
Meadow added that much of the increases is because of changes in the market, specifically pointing to new construction and residential inflation.
"Again, that is good news after the last couple of years of negative (growth)," he said.
The area that saw the highest increase in assessment inflation was the Fort Assiniboine/Goose Lake area, which saw a 16.3 per cent jump in taxable assessment value, going from $111 million to $132 million. Of that growth, such as improvements on property or new development permits accounted for $3.2 million, while inflation accounted for roughly $18 million.
Assessment manager Troy Britles said the number is deceiving, saying that although the area saw the highest percentage increase, the value of the increase was smaller than that of Whitecourt-area properties, where the assessment value increased by 4.7 per cent.
"On paper, it might look alarming, but I don't think there is cause for concern," he said.
Fort Assiniboine/Goose Lake Coun. Peter Kuelken said the county, especially in his area, is seeing a lot of sales due to people coming in from large urban areas looking for a more rural lifestyle.
"Is that something that is happening in other areas, and if so, is it a trend that you see continuing?" he asked.
Britles replied that it was not a trend unique to Woodlands County, adding that many rural communities they serve are seeing the same trend, nor did he think it was a trend that would be reversing anytime soon.
Kuelken then asked if there was any indication of whether the province would be looking at how farmland is assessed, saying that its assessed value does not match what properties are selling for.
He added that he asked the question because a large portion of the county's budget is used to service or build infrastructure to service agricultural producers.
Britles said the way farmland is assessed is highly regulated, and the process has not changed much since the 1960s.
"You just slide the formula across. The only way an assessment changes is if you do some physical change to the land, such as clearing some trees to create more plantable land," he said, agreeing that farmland assessment is well below true market value.
For instance, he said that in Woodlands County, a quarter section of farmland would sell for anywhere between $150,000 to $250,000 but would be assessed for tax purposes at $15,000 to $20,000.
Farmland assessment specialist Sean Cosen, who also heads Accurate Assessment's industrial team, added that like farmland, designated industrial property is also regulated by the province, and one of the reasons for the increase in assessed value is that the government increased the modifier in its assessment formula.
He also noted that the province removed a form of depreciation companies could claim on several types of designated industrial properties, including the Alberta Newsprint Company (ANC) facility.
"That property's assessment alone went up by $80 million," Cosen said.
Cosen added the province has signalled that there will be a review of all regulated assessment types, but when those reviews will happen and what categories will be looked at first has not been released.
However, when those reviews start to take place, he said one of the first steps will be that the province will consult with stakeholders.
"As a municipality, the RMA (Rural Municipalities of Alberta) will be the stakeholder representing rural municipalities," Cosen said.
