Assessment and Tax Guide

Assessment and Property Tax Guide How does your property’s assessed value change compare to the average change?

Market value assessments for single family homes in Beaumont decreased approximately 2.0%. Compare your assessment on your new notice with last year’s assessment to determine if your change was higher or lower than the average.

Example A: 2020 Assessed Value: $400,000 2021 Assessed Value: $388,000 This home's assessed value decreased by 3.0% which is more than the average assessed value decrease of 2.0%. Therefore, the owner can expect to pay less than the previous year.

Example B: 2020 Assessed Value: $400,000 2021 Assessed Value: $396,000 This home's assessed value decreased by 1.0% which is less than the average assessed value decrease of 2.0%. Therefore, the owner can expect to pay more than the previous year.

Example C: 2020 Assessed Value: $400,000 2021 Assessed Value: $392,000 This home's assessed value decreased by 2.0% which is the same as the average assessed value decrease of 2.0%. Therefore, the owner can expect their tax amount will be similar to the previous year.

For more information on assessment and property tax legislation, go to the Municipal Affairs website alberta.ca/municipal-property-assessment.aspx or contact us: 5600 49 Street, Beaumont AB T4X 1A1 Tel: 780-929-3306 Fax: 780-929-8729 Email: taxes@beaumount.ab.ca beaumont.ab.ca

How does Beaumont assess the value of each property?

The method used to calculate the value of your property is called market value assessment (MVA). According to provincial legislation, Beaumont is required to update your property assessment annually, based on MVA. Beaumont’s professional assessor uses many of the same factors in determining property values as real estate agents use. They consider the selling price of similar properties, and other factors such as the dwelling’s age, location, lot and building size, condition, views, and green spaces.

As provincially legislated in the Municipal Government Act, your assessment must reflect the market value of your property on July 1 of the previous year as well as the physical condition of the property on December 31. This means that your 2021 assessment notice reflects the value of your property as of July 1, 2020, and the physical condition on December 31, 2020.

Assessed values get checked at three points: by Beaumont’s internal checks and balances, by the Province’s audit process, and finally by the individual property owners.

Market value assessment is a fair process Market value assessment ensures that homes with similar characteristics, within the same community or a similar community, are assessed similarly. Most importantly, it ensures that the properties with similar market values are assigned a similar share of property taxes.

Market value assessment is transparent Market value assessment is becoming a standard property tax assessment tool throughout the world. It is regarded as fair and transparent to the homeowner because it uses visible and readily available factors.

Property taxes do not rise by the same amount as property values The total amount Beaumont collects in property taxes doesn’t change if property values across the city go upor down-in any given year. Your share of the total taxes may change, however. Individual tax amounts are allocated among property owners each year according to how each property’s assessed value changes in comparison to all other properties.

Key facts about property assessments: •

Beaumont determines the revenue it needs from property taxes to cover a portion of the budget.

•

Property values are only used to determine how the total tax revenue requirement is distributed.

Please refer to the back of your 2021 Combined Assessment and Tax Notice for information regarding Assessment complaints, payment options and Supplemental assessments.

Many property assessment values in Beaumont have decreased between 2020 and 2021. How will this affect property taxes?

Beaumont’s requirements are not tied to changing property values. Beaumont does not get extra revenue when the property values increase, or less revenue when the property values decrease.

The budget requirements determine taxes. If the budget requirement increases, taxes may increase.

Where do your Municipal tax dollars go?

Beaumont uses property taxes to assist in funding Beaumont services such as:

Provincial legislation requires Beaumont to bill and collect education taxes on behalf of the Public and Separate School divisions. Beaumont collects education taxes from property owners and remits the funds to the appropriate authority. Beaumont has no control over the amount of education tax that is requisitioned.

How does Beaumont decide how much to collect from property taxes?

1. Beaumont Council sets the budget based on public feedback.

After public feedback and submissions from Beaumont departments, Council determines the budget requirements with consideration for Beaumont’s overall operations, the demand for additional municipal services, the future impact of significant projects, the ability to deal with the requirements of a growing community and the need to remain competitive in the Edmonton Region.

Council typically approves the budget for the future year each December. This budget is reviewed again in April prior to confirmation of the property tax rate.

2. Revenue expected from other sources is

projected.

Beaumont receives funds from grants, user fees, permits, fines, investments and other earnings.

3. The total tax revenue requirement is calculated.

Beaumont calculates the difference between our budget need and non-tax sources of revenue. The remainder is the amount required from property taxes.

4. Each property owner’s share of the property tax

requirement is determined.

Beaumont does not just split up total property tax requirements between households. Instead, each property owner is asked to contribute their share based on the assessment value of their property relative to the assessment value of other properties.

Beaumont calculates each property owners’ share according to the market value assessment for each property. If the value of your home is assessed higher than your neighbour’s, then your total tax bill will be higher.