Please review carefully the combined assessment and tax notice information for each property that you own in Lacombe County in order to ensure that the information is correct. This information includes the property classification (explained below), plus your name and address.

For the 2008 tax year, Lacombe County has prepared a general assessment that complies with current provincial legislation including the 2007 Ministers guidelines. Market Value is the valuation standard for all properties except farmland, railway, linear and machinery & equipment properties. Properties not on market value are assessed on regulated rates of assessment.

Definition of Market Value
Market value is defined as the amount that a property might be expected to realize if a willing seller sells it on the open market to a willing buyer.

Property Classification
Properties are classified as either residential, non-residential, farmland, linear or machinery & equipment. Some properties have more than one class. The sub-classes of property are detailed below and provide a brief explanation of the 2008 assessment. Please check the classification of your property to ensure that it is properly described.

Residential Properties
Residential properties are assessed at market value, as of July 1, 2007. Market value is determined by analyzing the sales of all property types throughout the municipality. Mass appraisal techniques are used in this valuation process. Since assessment reflects mid range sale values, the assessment may be slightly higher or lower than an actual sale price on a particular property.

Non-Residential Properties
This category of property refers to industrial and commercial operations, such as industrial plants, gravel pit operations, service stations, meat processing facilities, stores, etc. Properties that have a multi-purpose use, such as a commercial business operating from a residential acreage, would have the commercial portion of the assessment classed as non-residential. The non-residential category of land, buildings and structures is assessed at market value.

Farmland
Farmland is assessed on the ability of land to produce agricultural products. The 2007 Ministers Guidelines in conjunction with the Alberta Farmland Assessment Manual has been utilized to prepare farmland assessments. The Rural Assessment Policy applies the amount of agricultural valued land assessment in the owner's unit as an exemption towards the residence.

Machinery and Equipment
Machinery and equipment (M&E) that is used for processing or manufacturing is assessed at the stipulated regulatory level as per the 2007 Minister's Guidelines. This category includes properties such as gas plants, gas and oilfield installations, seed cleaning facilities, etc.

Linear properties
Linear properties include electric transmissions lines, telephone and telecommunications equipment, oil and gas wells, pipelines, towers, power generation and cable. Linear property is assessed by provincial assessors using regulated rates and depreciation schedules which apply specifically to this property.

Farm properties
Farm properties often contain several assessment classes. If the property contains a residence, then the residence along with the first 3.00 acres will be assessed at market value, as if it were a 3.00 acre subdivided parcel. These values are classified as residential on your notice. If there is a commercial or industrial operation on the property, all buildings and improvements and the land area used for the operation will be assessed at market value. These values will be classified as non-residential. If there is M&E used in these operations, the M&E will be assessed based on regulated rates and the assessment will be classified as M&E. The farmland is valued based on agricultural values and is classified as farmland. Farm buildings are exempt from assessment and taxation to the extent that they are used for farming purposes.

Tax Calculation
To calculate your taxes, your Assessment is multiplied by the Tax Rate for your class of property in the appropriate region. Example - if you have a residential property and are a public school supporter your calculation would be as follows:

Assessed Value = $400,000
Tax Rate = Municipal Residential + Education Residential/Farmland
Tax Rate = 2.120 + 2.287
Tax Rate = 4.407
Assessment X Tax Rate = Taxes
400,000 x 4.4070/1000 = $1,762.80

A Tax Rate is per thousand dollars of assessment. For example: For each $1,000 of assessed value, taxes would be $4.407.

In this example the General Municipal tax is $848.00 or 48.10% of the total tax levy of $1,762.80

Lacombe County is required to collect the Education taxes on behalf of the Province, but has no jurisdiction in setting the Tax Rate. The provincial government establishes the Education Tax Rate.

Payment of Taxes
TO AVOID ALL PENALTIES, DUE DATE for tax payment is the LAST BUSINESS DAY OF AUGUST.

Payment may be made:

• In person at the County Office during our regular office hours (Monday - Friday 8:00 a.m. - 4:30 p.m.) or after hours by using our mail box located at the road entrance to the County Office.
• By cheque, cash, money order or direct debit. Credit cards are not accepted.
• Through Lacombe County's Tax Installment Payment Plan (TIPP)
• By post dated cheque dated no later than August 31st of the current year.
• By bill payment through internet banking.
• Any payment forwarded by mail must bear a postmark of no later than August 31st of the current year.
• When taxes are to be paid by a mortgage company, the owner is responsible to ensure that the taxes are paid on time. Tax information on this tax notice has been sent to your mortgage company only if so stated on the front of this notice.