Question 1

What is the difference between an appraisal and an assessment?

Accepted Answer

An appraisal is a professional opinion of value by a licensed and accredited appraiser.  Someone who holds the AACI or CRA or P.App Designation behind their name is considered to be a professional appraiser and can legally perform the duties of an appraiser.
 
Assessment is the act of putting a value on a property for taxation purposes.  Within the Province of Alberta it is required that assessors use "mass appraisal" to establish assessed values.  
 
It can be summed up by the quote "Appraisers Value the Tree, Assessors Value the Forest"

Question 2

Why do we have to fill out the Assessors Request For Information form (ARFI)?

Accepted Answer

Property Assessments in Alberta are an annual function.  Each year, new, current data is required to ensure the assessments are as accurate and reliable as possible.  Non-Residential property assessments are calculated using the Income Approach to value and current lease rates and expenses are crucial to ensuring an accurate and reliable assessment.

Question 3

What assurance does a property owner have that the information provided will remain confidential?

Accepted Answer

The information collected is held in confidence and only used for assessment purposes under section 9 of the Municipal Government Act (MGA).  The information collected is not sold, shared, or given to any other party, either Government or private.  No personal information that is supplied is given out at any time (In accordance with FOIP).  Assessment purposes includes, the creation of assessments, model building and the assessment appeal process.

Question 4

What about FOIP?

Accepted Answer

FOIP applies to your personal information, such as birthdate, social insurance number, home or business mailing address, telephone number, age, sex, race, religion, marital status, fingerprints, biometrics, blood type, genetic information, health, and education.  For a full list please see the Freedom of Information and Protection of Privacy Act Section 1(n) – Definition of “Personal Information”.

Question 5

Are we Government or a department of the Government?

Accepted Answer

As assessors we are appointed by your Town, Village, County or City Council to act on behalf of the Municipality as a “designated officer” in the preparation of Assessments.  We are a function of Municipal government and are audited annually by the Provincial Government (Department of Municipal Affairs Assessment Audit).  To be an assessor you must meet the requirements set out in the Municipal Assessor Regulation (MAR) which is established by the Minister.  “Practice of Assessment” is also defined in the MAR.

Question 6

Do I have the right to appeal if I do not fill out the Assessors Request For Information?

Accepted Answer

Non-compliance “CAN result in a loss to appeal your assessment”.  It is not the assessor that dictates this, it is the Provincial Legislation (Municipal Government Act – MGA) Sections 294 and 295.  Regardless of whether you supply the requested information you will always have the right to appeal.  Whether your appeal goes to a merit hearing (hearing about the issue being raised) or gets heard by an Assessment Revie Board (ARB) is another issue. 
Non-compliance has been held time and time again by the Assessment Review Boards as a legitimate reason to consider an assessment appeal invalid (in accordance with the legislation).  The Assessment Review Board will hold a “preliminary” hearing to establish whether the full complaint should be heard by an Assessment Review Board or not.  No property valuation issues will be heard at the preliminary hearing, and if it is determined that the property owner did not comply, their complaint will be considered invalid and their full complaint about the assessment will not be heard by the Assessment Review Board any further (it will not go to merit hearing).  The Assessment Review Board (not the assessor) will make the final decision on whether a complaint is valid or not.

Question 7

If I don't return the forms, how do you arrive at the assessment?"

Accepted Answer

The Matters Relating to Assessment and Taxation Regulation (MRAT) requires the use of “typical” rates to assess property within the Province of Alberta.  If you do contribute information for assessment purposes (lease rates, sales info, etc..) then your information will be considered in the overall rates used to calculate the assessments.  If you do not comply, you are subject to the rates we determine are “typical” without your contribution to the study.  As with any analysis or study, the more accurate and reliable information supplied to the analyst, the more accurate and reliable the results will be.  It is important to note that the assessment is always calculated using “typical” rates.  As mentioned, the rates you provide may or may not be used to determine your assessment.  If your rates are found to be “typical” then they may be used, if they are not found to be “typical” then other rates will be used.
If you do not return your forms, then you CAN lose your right to appeal the subsequent assessment.

Question 8

What about the appeal fees?

Accepted Answer

If you appeal your assessment to the Assessment Review Board (CARB or LARB), and you are unsuccessful at either a preliminary or merit hearing, your appeal fee will be kept by the Assessment Review Board.
If you are successful at the merit hearing, your appeal fee will be refunded to you by the Assessment Review Board.
If you come to agreement with the Assessor prior to the hearing and your complaint is withdrawn, your appeal fee will be refunded to you by the Assessment Review Board.
If you decide not to proceed with your complaint and withdraw your complaint prior to the Respondents Disclosure of Evidence Deadline, your appeal fee will be refunded to you by the Assessment Review Board.  If it is after the Disclosure deadline, your appeal fee may be kept by the Assessment Review Board (This differs by Municipality).

Question 9

Why is the income approach used?

Accepted Answer

The income approach is based on the Economic principle of anticipation.  It is the conversion of an income stream (rental rates) to a net operating income (NOI) after stabilized deductions are applied, that is capitalized into value (using a Capitalization Rate).  The income approach is the most widely used method of valuing non-residential properties; both by assessors and appraisers.  It is the approach most investors will use when determining a price, they are willing to pay for a property based on its income earning potential and rates of return.  It is a widely used approach which is generally understood in the marketplace.

Question 10

My property is owner occupied; do I still need to return the forms?

Accepted Answer

Yes.  There are many more questions than just lease information questions on the forms, further to that, leasing status & expenses can and often do change year-over-year.

Question 11

How can I return the forms?

Accepted Answer

At the top of this website there is a butten titled "Assessors Request For Information"; Select that button and then proceed to fill out the applicable form for your property.  Once completed, hit the submit button and it will be submitted... Done!
You can also attach 1 document and up to 3 photos.
 
Alternately the forms can be printed, emailed, faxed, or mailed.

Question 12

How long do I have to return the form?

Accepted Answer

The Municipal Government Act (MGA) states 60 days.  We often provide 60 days plus 7 days for mailing (so ~67 days in total).