Revising Property Assessment in the North

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The Property Assessment and Taxation Act R-025-2023, registered with the Chief Legislative Counsel on October 16, 2023, introduces several important amendments to the Property Assessment Regulations. These changes, enacted under the authority of the Minister and section 117 of the Act, aim to modernize and clarify various aspects of property assessment and taxation.

Note there are two common methods for determining property assessment values: Fair Market Value (FMV) and the Cost Approach. FMV estimates the price a property would fetch in an open market transaction between knowledgeable, willing buyers and sellers, taking into account recent sales of comparable properties, current market conditions, and the broader economic environment. In contrast, the Cost Approach assesses a property based on the cost to replace or reproduce it, minus any depreciation. This involves calculating the expenses associated with constructing a similar property and adjusting for factors such as wear and tear, age, and market conditions. This method is particularly useful for unique or specialized properties where comparable sales data may be scarce. Both methods can be employed individually or together to arrive at a comprehensive property assessment value. Nunavut uses the cost approach method.

One of the key changes is the repeal of the definitions for “Alberta Schedule” and “Assessment Manual” in Section 1, which streamlines the terminology used in the regulations. Additionally, Section 1.01 is entirely repealed, indicating a significant shift in regulatory definitions and frameworks. The amendments also introduce six new schedules (Schedules 1 through 6) after Section 30 to provide updated and more comprehensive guidelines regarding property assessment. Concurrently, existing Schedules G and H are renamed as Schedules 7 and 8, ensuring a consistent sequential order throughout the document.

Numerous provisions throughout the regulations have been updated to reflect the new schedule numbers. For example, references to “Schedule A” and “Schedule B” in various sections are replaced with their new designations (Schedules 9 and 10), including important sections related to property assessment procedures and guidelines. Moreover, Schedules E and F have been entirely repealed, which may indicate that their content is either outdated or has been incorporated into the new schedules.

The implications of these amendments are significant, reflecting an effort to simplify and modernize property assessment regulations. By repealing outdated definitions and reorganizing the schedules, the legislation aims to enhance clarity for stakeholders involved in property assessment, including assessors, property owners, and tax officials.

The Property Assessment and Taxation Act R-025-2023 aims to update property assessment regulations, by improving the processes and ensuring that the legal framework remains relevant and accessible to all parties involved in property taxation.

Nunavut (R-025-2023) October 30, 2023