The DMA Way

Alberta Regulations Update - Regulated Industrial Property Assessment (RIPA)

by DMA Staff | Jul 28, 2017

Alberta Municipal Affairs has released the latest drafts of proposed new Regulations. The proposed changes to the CCRG document were previously released in draft form under the new title of Regulated Industrial Property Assessment (‘RIPA’) Guideline.  Feedback on that document was/is due by July 31. We have previously provided information on that document and our perspective however, please contact DMA if you would like to discuss the anticipated changes further.

If you are not happy with the proposed RIPA amendments from the document found here, feedback can be sent to Cate Watt by July 31st.

Some of these new draft Regulations are relating to Property Tax Assessment which we wanted to direct your attention too are located on the Alberta Regulations Review page. Feedback on these documents is requested by September 22:

  1. The new Sub-Classes Regulation relates to the new ability for municipalities to create assessment sub classes with differing tax rates. It would allow municipalities to split the non-residential classes into 3 potential sub-classes: vacant non-residential, small business, and other non-residential (which would include industrial property). Small business is defined as having fewer than 50 full-time employees, or fewer than some number less than 50 employees set by the municipality in a bylaw. The verification of the number of employees is through the municipal business licensing program. The other non-residential mill rate (which would include industrial property) cannot be more than 1.33 times more than the small business rate.

  2. The updated Matters Relating to Assessment & Taxation Regulation includes a preliminary list of Major Plants that would be considered Designated Industrial Property and therefore assessed under the new Centralized Assessment Unit. At first glance, this list appears substantially incomplete and further work will be required. In addition, this document introduces the removal of the valuation standard of market value for Structures. Instead, the value standard will be a process of calculations, the answer not needing to have a correlation to value. This is a concerning concept and removes the ability of a ratepayer to have an equitable assessment with other similar ratepayers, or have an assessment that equates to its value.

There are many proposed changes that are happening quickly as it relates to industrial property tax assessment in Alberta. Many of these proposed changes will have a significant impact on a company’s budgeting and forecasting for property taxes.

For more information on these upcoming changes please click here to contact us.