City of Lloydminster -  Assessment Information for 2008
  4420-50 Avenue, Lloydminster, AB.    T9V 0W2 
  Telephone (780) 875-6184     Fax (780) 871-8345                                                              

Effective January 1, 2005 the City began to use the Alberta Assessment System - which allows for assessments to be updated yearly. 

You should recently have received your 2008 Assessment Notice.  Your assessment is the value that is placed on your property for taxation purposes. Prior to 2006 you received your assessment notice with your tax notice.  In 2006, we began mailing the assessment notices separately.  This will allow time to address assessment complaints prior to the tax notice being issued.  On the back side of the assessment notice, you will find an estimate of 2008 taxes, based on the new assessment and an estimated mill rate.  The mill rate for 2008 will be set in May by the City and the School Boards.

Most residential property is assessed based on market value, while most commercial/industrial property is assessed using the income method.  Agricultural land is assessed using regulated rates.

For residential property, the assessment on your property is not current market value, however, for most residential property it is close to average market values for the neighborhood or City.  For 2008, Valuation Day is July 1, 2007.  Under the Alberta system - all property is taxed on 100% of the total assessment. 

What is an assessment?
An assessment is the value placed on your property for taxation purposes.  It is one of the components used to determine your property tax.

How often is my property assessed?
Property assessments will be updated annually.  Market value assessments are based on market conditions as of July 1of the previous year and physical characteristics of the property as of December 31 of the previous year.  This does not mean that each property will be physically inspected each year - rather the assessment will be updated using data that is on file and/or collected during the year.  Approximately 20% of the property in the City of Lloydminster is physically inspected each year.

Why is my assessment so important?
Your assessment plays a vital role in determining the amount of tax you pay.  It is very important to ensure that your assessment correctly reflects the physical characteristics of your property.  The assessors use property detail and sales data information to determine your assessment.  If this information is incorrect, your property tax amount will be affected.

What is Market Value Assessment?
Market Value Assessment is the method used under the Alberta Assessment System to prepare assessments.  It is the amount that a property might be expected to sell for if it is sold on the open market by a willing seller to a willing buyer.  Market value assessment is not necessarily the actual purchase price of the property.  Professional assessors consider the physical characteristics of a property, study sales of similar types of property, and develop assessments based on these factors.

Why did my assessment change again this year?
In 2005, the City of Lloydminster moved to the Alberta Assessment system.  This system allows for assessments to be updated on a yearly basis.  In 2004 and previous years, the City of Lloydminster followed the Saskatchewan Assessment system - which only allowed for assessments to be updated every 4 years.  The differences in the two systems are the main reason for the significant assessment change on properties in the year 2005.  A comparison of the two systems for property is as follows:

• Alberta Assessment System - used for 2005 and years thereafter - residential property is assessed using Market Value Assessment (see above)- produces a total assessment for each property - based on market conditions on July 1 (Valuation Day) of the previous year.   Agricultural property is assessed using regulated rates; commercial/industrial property is assessed for the most part using the income method. 

• Saskatchewan System - used for 2004 and previous years -property assessed using a Market Value system, however, the assessment was based on market conditions on July 1, 1998.  This produced a total assessment, which for commercial property was also the taxable assessment. However, for residential property the taxable assessment was 70% of the total assessment.  For agricultural assessment, the taxable assessment was either 50% or 55% of the total assessment.

In summary, all assessments are now at 100% of value.  This method provides a more meaningful assessment for property owners in the City.

What do I do if I think my assessment is incorrect?
You should consider whether the assessment is a reasonable reflection of your property value.  Compare your assessment to similar properties in your neighborhood, then consider whether you have any special features that would affect the value of your property - an oversize garage, a swimming pool, the location of your property, the size of your house.  If you have questions regarding your assessment, you may contact the Tax Department at City Hall at (780) 875-6184, ext. 2124 OR contact our assessors, Compass Assessment Consultants, directly at 1-800-251-9711 or (780) 469-5552.  After speaking to the assessors, if you still feel your assessment is incorrect, you may file a formal assessment complaint.  The complaint form is attached to your yearly assessment notice and must be filed by the date indicated on the assessment notice.

How do I file an assessment complaint?
If, after discussing your assessment with the assessor, you still feel there is an error in your assessment you may file an assessment complaint.  The complaint form is attached to your assessment notice.  It is not permissible to complain simply on the basis that an assessment is too high.  You must provide the specific grounds on which it is alleged that an error exists AND a summary of the material facts on which you rely.  If you are appealing a non-residential assessment, there is a fee to file the complaint, and the fee must be submitted with the complaint to the Assessment Review Board Secretary.

• Non residential property with an assessment of less than $1,000,000  - filing fee of $100.00
  

• Non residential property with an assessment of greater than $1,000,000 - filing fee of $200.00

Once you file a complaint, your assessment will be reviewed by the assessor, and you will have the opportunity to present your case to the Assessment Review Board.  If you are not satisfied with the result of the hearing by the local Assessment Review Board, the complaint can be taken to the Municipal Government Board set up by the Province of Alberta.

What is a mill rate?
The mill rate is the rate established to generate the funds required to operate the City and the schools for the calendar year.  City Council approves the mill rate each year after the budget has been finalized.  The School Boards establish their individual mill rates.  Additional mill rates for special requisitions are approved on a yearly basis.

The mill rate indicates the amount of tax you will pay for every $1,000.00 of assessment placed on your property.

For example - if the mill rate (municipal and school) is 12.5 mills-for every $1,000.00 of assessment you will pay $12.50 of taxes.  Therefore, if you have property assessed @ $100,000 your tax bill would be $1,250.

Assessment   X   Mill rate  / 1000   =   Property tax amount

Does everyone pay school tax?
Yes, every residential and non-residential property owner is required to pay education taxes - including people without children in school and senior citizens.  This money is forwarded directly to the Lloydminster Public School Division OR the Lloydminster Catholic School Division to operate our local schools.  The School Boards establish their own mill rates yearly. 

Alberta senior citizens should contact the Alberta Seniors' Benefit program at (780) 427-7876 regarding programs to assist with payment of property taxes.  There are 2 programs available:

•  the Education Property Tax Assistance program - provides an annual rebate to senior homeowners who have experienced an increase in the education portion of their property taxes
  

• Alberta Seniors Benefit - the Alberta government provides financial assistance to low-income seniors on a monthly basis - this cash benefit can be used to help with costs of property taxes.

In 2005 the Saskatchewan government implemented the Education Property Tax Credit program. This program provides for a direct rebate to property owners of a percentage of the education portion of their property tax.  In 2008, the rebate for agricultural properties will be 47%;  for all other property owners the rebate will be 12%, with a cap of $2,500.00 for commercial, industrial and multi-unit residential.   For further information regarding this program, please contact Saskatchewan Learning at (306) 787-3441.


How do I know which school division my taxes go to? 
For individuals, all school tax is directed to the Public School Division unless the individual completes a "School Tax Declaration" and submits it to the Tax Department.  Individuals of the Catholic Faith must complete a declaration to direct their school tax to the Lloydminster Catholic School Division.

Once you have completed a School Tax Declaration - it will apply to all property you own within the City and will remain in force until a new declaration is received.  If more than one individual owns a property, each individual should complete his/her own declaration and the school tax will be directed as indicated on the Declarations.

For a corporation, unless they have filed a Declaration, their school support is considered "non-declared".  A non-declared designation indicates that their school tax is split between the two school divisions in a proportion stipulated by the school divisions yearly.

Open House dates for 2008
We will be holding an assessment open house with representatives from our assessment company, Compass Assessment Consultants, available to discuss individual assessments with property owners.  We encourage property owners to take this opportunity to speak to the assessor regarding their assessment.  You may make an appointment by contacting the Tax Department at City Hall at 875-6184, ext. 2124.  You are also invited to "walk in" to the open house, however, those with an appointment will be given priority.  The Open House will be held on Friday, April 18, 2008:

Please contact the Tax Department at City Hall at 875-6184, ext. 2124 if you have further questions and require more information.