Property Classification

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 2018 assessment for 2019 Taxation. Please check the classification of your property to ensure that it is properly described.

Designated Industrial Property
The new Modernized Municipal Government Act established a new property category called Designated Industrial Property (DI) which includes all facilities regulated by the AER, AUC or the NEB, as well as all linear property and all property designated in the regulations as a Major plant. DI property can include property from any of the classifications below, however all DI property in Lacombe County is either M&E, linear or non-residential. The assessment of all DI property is now the responsibility of the Provincial Assessor.

Residential Properties
Residential properties are assessed at market value, as of July 1 of the year previous to the tax year. 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.

Farmland
Farmland is assessed on the ability of land to produce agricultural products. The 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.

Non-Residential Properties
The Non-Residential category of property refers to industrial and commercial operations, such as industrial plants, well sites, 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. The major portion of the Non-Residential assessment in Lacombe County would be included as DI property.

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 Alberta Machinery and Equipment Minister's Guidelines. This category includes properties such as gas plants, gas and oilfield installations (which are now Dl properties) and manufacturing facilities (which are non-DI Properties). The majority of the M&E assessment in Lacombe County would be included as DI property.

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

 Lacombe County Taxable Assessment by Property Class

 Property Class

2018 Assessment

2019 Assessment

Percent Change

Percent of Total

 Residential 1,778,263,330 1,845,565,120 3.78% 27.49%
 Farmland 124,882,190 125,333,820 0.36% 1.87%
 Non-Residential 1,117,950,260 1,082,095,770 -3.21% 16.12%
 Machinery & 
 
Equipment
2,837,626,620 2,777,119,030 -2.13% 41.37%
 Linear 879,303,380 883,082,770 0.43% 13.15%
 Total 6,738,025,780 6,713,196,510 -0.37% 100.00%