In 1995, the new Municipal Government Act came into force. The Municipal Government Act consolidated a number of acts governing municipalities, including the former Municipal Government Act, the Municipal Taxation Act and other related legislation. In addition, the act set out the foundations for a current market value-based assessment system for most property in Alberta.
The Municipal Government Act gives direction to municipalities to prepare assessments every year.
The Municipal Government Act sets out two types of valuation standards for assessment purposes – the market value based standard and the regulated procedure based standard.
The market value based standard is considered the most fair and equitable means of assessing property. It is fair because similar properties are assessed in the same manner; it is equitable because owners of similar properties in a municipality will pay a similar amount of property tax.
The regulated procedure based standard uses rates and procedures prescribed by Alberta Municipal Affairs to calculate assessed values for certain types of properties. These types of properties include farm land, linear property, machinery and equipment, and railway property.