SUMA 2015: Property Assessment and Taxation Workshop

Sunday morning at 9:30 Councillor Henry and I attended the property assessment and taxation workshop. Here are some highlights.

• legally municipal governments are a natural person (recognized in court like a corporation) and has government powers (tax).
• all properties are to be assessed.
• there is distance between the assessment and municipalities.
• SAMA assesses reports assessed property values to municipalities 'Ad Valorem' (to value) otherwise known as mill rate
• considered a reasonable expectation of a person's ability to pay
• taxes = taxable assessed value x tax rate
• three property classes: agriculture, residential, commercial & industrial
• municipal tax policy is:
• what taxes to levy,
• what amounts, and
• who pays.
• mill rate factors transfer tax burden from one property class to another
• minimum tax reduces tax rate by increasing taxes lower valued properties
• base tax reduces the tax rate by increasing taxes on lower valued properties
• City
• create a tax phase in program to mitigate tax increases or decreases
• create sub classes

SAMA

• is looking to simplify their valuation data and their systems to improve service
• the importance of assessments is to provide the financial foundation for local governments
• Assessment Principles:
• mass appraisal,
• base date
• four year updates
• based on legislation
• market valuation standard
• regulated property assessment standard
• equity
• SAMA Board Orders
• relevant assessment legislation:
• The Assessment Management Agency Act
• prepare assessment manuals, guidelines, handbooks, and other materials
• perform valuations and revaluations
• maintain a central database
• ensure the public, municipal cuncils a government aware of assessment methods and policies
• confirm assessments of municipalities
• The Cities Act
• The Municipalities Act
• The Northern Municipalities Act
• corporations prefer longer term (3-5 years) between valuations for the sake of stability
• non regulated property assessment is an assessment for property other than a regulated property assessment
• mass appraisal means the process of preparing assessments for a group of properties as of the base date using standard appraisal methods, employing common data and allowing for statistical testing
• market value means the amount that a property should be expected to realize if the real estate in fee simple in the property is sold in a competitive and open market by a willing seller to a willing buyer, each acting prudently and knowledgeably, and assuming that the amount is not affected by undue stimuli
• market variation standard is the standard achieved when the assess value of the property
• is prepared using mass appraisal
• is an estimate of the market value of estate in fee simple in the property
• reflects typical market conditions for similar properties
• meets quality assurance standards established by order of SAMA
• Market Valuation Standard Publications
• Market Value Assessment in SK
• SAMA's 2011 Cost Guide
• Marshall and Swift/Boechk LLC.
• Market Valuation Standard has three accepted  approaches to value
• cost approach
• sales comparison approach
• property income (Rental) approach
• Role of Assessor
• municipal employee
• prepare assessment role
• determine tax class of property
• determine tax status (assessable or exempt)
• Role of Assessment Appraiser
• independent of municipalities
• establish, maintain, and undertake valuations
• Assessment Appraiser has right of entry:
• produce identification
• reasonable times
• reasonable request
• Land valuation is the average selling price as of the applicable base date
• the new base date is January 1, 2015
• improvement valuation uses replacement cost with adjustments for depreciation and average selling price
• Cost Approach
• Property Value = land value + building value
• recent property valuation trends have been rising steeply
• residential last time was about 33% across the province
• agri arable rose about 100.2%
• oil and gas rose 15%