Town of Rocky Mountain House

RESIDENTIAL

Residential properties are assessed at market value, as of July 1st of the year prior to the tax year. Market value is estimated by analyzing the sales of all property types throughout the Municipality. Mass appraisal techniques are used in this valuation process. The Alberta Provincial Government legislation states that the assessment ratio, for all residential properties be 95 to 105 per cent.    

As required under the Alberta Municipal Government Act, assessors collect and update information regarding property to ensure fair and accurate assessments. Assessors conduct site inspections periodically to update property assessments. Inspections start early in the year and run until the end of each year. Inspections may include measuring buildings, photographing exteriors, and gathering details regarding interior components and use of the property. Inspections for your property may occur if there has been a recent building permit issued or a physical change, if your property has recently been purchased or sold, or if your property is in the annual re-inspection area.

NON-RESIDENTIAL

Non-Residential category of property refers to property where retail, office, industrial, or other non residential activities occur. Properties that have a multi-purpose use, such as a commercial business operating from a residential acreage, will have the commercial portion of the assessment classed as non-residential. Non-residential land, buildings and structures are assessed at market value as of July 1 of the year proceeding the tax year.

More information can be found: Accurate Assessment Group - Assessment

Property assessment in Alberta is regulated by the provincial government. The assessor calculates the assessment based on the prior 3 years of sales data and uses software to calculate individual property assessments. The Town of Rocky Mountain House receives this data from the assessor and is unable to make any changes.

Factors that may affect residential market value include the total finished living area, quality of structure, age of structure, level of modernization, building type (i.e. duplex, etc.), structure type (i.e. bungalow, two-storey, etc.), unit type in condominiums, type and size of garage, lot size and zoning, lot topography and access, views from the property and location of the property to traffic, greenspaces, community services, commercial properties, multi-family properties, waterways, schools, trains, transmission lines and communication towers.

There are a number of factors that can affect the value of property. Consider the following factors when comparing the value of two neighbouring properties:

• Lot size and influences to each lot – i.e. traffic, parks, walk-out lot
• Type of house structure – i.e. bungalow, two-storey, or split level
• Size of the house
• Age and condition
• Basement development – i.e. finished or unfinished or a walk-out basement
• Presence and size of a garage
• Renovations and quality of interior and exterior finishes

Your property taxes are based on the value of your property as of July 1 the previous year. Changes in real estate market conditions can result in substantial changes in property values between the time of valuation and when property assessment or tax notices are received by property owners. Any change in those property values will form the basis for the next year’s assessment.

The simple answer is the tax formula. The tax rate floats to maintain the total tax amount collected, based on the total assessment in Town.

In 2021 assessment decreased overall by 4.95% or $33.381 million for residential properties. Single family homes in total decreased by 5.33% or $26.5 million. If an individual home increased or decreased by a rate different than the overall average change then the taxes will change slightly because the overall tax rate is calculated based on the total amounts, not individual properties. The table below shows the changes in assessment from the budget in December 2020 and the final assessed values provided by the assessor for the May 2021 tax rate calculation.

There is also the split between residential and non-residential to consider as this plays into the overall tax calculation.

Again, taxes don’t always go down if there is deflation but on the flip side in 2022 the cost of living is set to increase by 4.7%, yet taxes won’t go up by the amount of inflation either.

Individual taxes will only go down if that assessment decreases more than the average total assessment change. 

The formula is assessment x tax rate = taxes. This formula is applied to the overall taxes and on every property individually. If the change in assessment is different individually than the overall total, then there will be a change to a property’s tax bill.

Yes, it can. A change in your property taxes is typically a result of three factors:

1. Whether the change in your property’s assessed value is higher or lower than the average change in property values in the municipality; or
2. Changes in the amount of money required by the municipality’s budget;
3. Changes in the amount of money required by the province through the education property tax.

For example: If the value of your property increased by 7 per cent while the average increase in property values in the municipality was 5 per cent, then your property taxes may increase.

Your assessment notice is provided in February to give you time to review your property’s assessed value and contact the Town of Rocky Mountain House if you have concerns about the assessment before property taxes are determined. Since you are not able to dispute your property tax bill, you must address any concerns with your assessment notice before the assessment complaint deadline closes.

Even if you file an appeal/complaint, you must still pay your taxes. If your payment is not made by the due date, you will be charged late penalties.

If your appeal results in a lower assessed value of your property, a refund of the difference owing will be issued to you as soon as possible.

If your appeal results in an increased assessed property value, you will have 30 days from the date of the appeal board's decision to pay any outstanding amount owing.

No, you cannot appeal your taxes. Property taxes are based on the municipal tax rates that are applied to the values of all properties in a municipality. You may appeal the assessed value of your property but it must be done during the period specified on your assessment notice.

Educational tax rates are not set by the Town. They are set by the Ministry of Education, who then advises municipalities of the total amount of school taxes that need to be collected. The Town collects this amount and remits it directly to the Provincial Government. Their calculation is based on the budget to operate the educational system in Alberta.

Like the education portion of your property tax bill, the Town has no control over the Westview Lodge requisition. Rocky Seniors Housing submits its requisition to the Town and we collect it, then remit the funds directly to Westview Lodge. The overall amount is quite small – in 2024 it was $155,715 for a tax rate of 0.1%.

The penalties are:

• August 1:  4%
• October 1:  6%
• January 1 of the following year: 10%

Property Tax Coordinator
Town of Rocky Mountain House
propertytaxes@trmh.ca
403-845-2866