Our vision
To be a leading annual market value assessment jurisdiction, earning the respect and trust of our customers every day.
Onward/Assure The City of Calgary of stable tax revenue financing through effective property and business assessment processes.
© The City of Calgary
Onward/Assure The City of Calgary of stable tax revenue financing through effective property and business assessment processes.
On behalf of the Assessment Management Team, I am pleased to present Assessment’s 2013 Annual Report. This report highlights our key activities and accomplishments over the past year, including the challenges we faced with last June’s flood.
Last year, we challenged ourselves to exceed customer expectations by upgrading our online solutions and providing better person-to-person services.
The quality of our valuations assures stable tax revenues to finance and support key City services such as transportation, police and fire protection, parks and City infrastructure.
Our customer satisfaction results continue to move in a positive direction and exceed previous years’ results, while the complaints filed against our assessments continue to decline.
Just as important as the work we do preparing, communicating and defending assessments is the work we do preparing policies and reports based on Council direction and our business unit requirements. Add this to the historic flood of 2013 and our business unit was busier than most years but also highly successful in meeting our goals and objectives.
Thanks to the hard work of our staff, I am very proud of our performance and our service to Calgarians this past year. I look forward to continued improvement in the delivery of high-quality assessment services.
To be a leading annual market value assessment jurisdiction, earning the respect and trust of our customers every day.
In serving our customers – the taxpayers, The City of Calgary, and the Province of Alberta – we:
Assessment is governed by the Municipal Government Act (MGA) of the Province of Alberta and civic bylaws. We adhere to this legislation through our activities preparing, communicating and defending assessments.
We work to ensure:
Our work stays on pace with one of the most dynamic real estate markets in the country. Our assessment professionals are experts in their respective field and use some of the industry’s most advanced analytical appraisal tools to prepare property and business assessments.
Assessment’s core business focuses on completing three activities in an annual cycle:
1 Preparing annual property and business assessments.
2 Communicating assessed valued to property and business owners.
3 Defending assessments to ensure equity for Calgary taxpayers.
Prepare annual property and business assessments.
To ensure equity for all property and business owners, Assessment:
Click an image to view the details
The Assessment Management Team oversees Assessment’s strategic direction and management.
Annual property and business assessments reflect Calgary’s market conditions as of July 1 of the previous year.
Assessment values provide the basis for approximately $2.1 billion in property and business tax revenues.
26,260
Business accounts
Business assessments are prepared in accordance with the MGA and civic bylaws.
26,260
Total taxable accounts
Business assessment increased by seven per cent.
Business Assessment Roll value
$2.96 billion
In addition to preparing the Roll, Assessment handles maintenance throughout the year.
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Total taxable property assessment value | $215 billion | $235 billion |
| Residential and multi-residential base | $165 billion | $174 billion |
| Farm land base | $12 million | $11 million |
| Non-residential base | $50.3 billion | $61.3 billion |
| Total taxable business assessment value | $2.72 billion | $2.96 billion |
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Median single residential assessment (excluding condominium) | $400,000 | $410,000 |
| Median residential condominium assessment | $240,000 | $250,000 |
| Highest single residential assessment | $19,980,000 | $19,790,000 |
| Typical residential market value change | -3% | 3% |
| Highest non-residential assessment | $1,259,556,000 | $1,452,320,000 |
| Typical non-residential market value change | +2% | 20% |
| Typical net annual rental value change (Business Assessment) | -3% | 7% |
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Residential (including multi-residential accounts) | 431,206 | 440,424 |
| Farm land | 608 | 608 |
| Non-residential | 14,479 | 14,635 |
| Total | 446,293 | 455,667 |
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Annual Property Assessment Notices | 456,373 | 464,574 |
| Amended and Supplementary Property Assessment Notices | 11,011 | 10,512 |
| Total | 467,384 | 475,086 |
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Single Residential | 7,997 | 9,001 |
| Residential condominium | 392 | 455 |
| Total | 8,389 | 9,456 |
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Office | 6,495 | 6,346 |
| Industrial/warehouse | 7,977 | 7,923 |
| Shopping centres | 6,871 | 6,928 |
| Retail | 3,653 | 3,654 |
| Accommodation | 155 | 160 |
| Parking | 557 | 578 |
| Other | 396 | 379 |
| Total | 26,104 | 25,968 |
| 2012 Roll | 2013 Roll | |
|---|---|---|
| Annual Business Assessment Notices | 25,532 | 26,260 |
| Amended and Supplementary Business Assessment Notices | 6,714 | 3,876 |
| Total | 32,246 | 30,136 |
(per cent by community)
Residential communities
Our 2013 Assessment Roll met the Provincial Assessment Quality Standards for the residential and non-residential property classes, confirming that Assessment continues to follow legislated and professional standards.
There are two main quality measures that are regulated by the provincial government and used to determine the accuracy of assessments: the level of assessment and the uniformity of assessment.
The uniformity of assessment measure has a maximum allowable value of 15 per cent or less for residential and 20 per cent or less for non-residential property.
The statistical quality measure of the overall level of assessment for residential property in 2013 was 99.8 per cent and for non-residential property was 97 per cent. This quality measure shows the typical relationship between the assessed value determined by Assessment and a property’s actual sale price for all properties that sold during the valuation time frame. The allowable range in the standard is 100 per cent, plus or minus five per cent.
Assessment has internal and provincial controls and measures in place to achieve high quality standards. Assessed values also go through a final important quality check – review by property and business owners.
| Key performance indicator results | Provincial quality standards | Actual 2012 (%) | Actual 2013 (%) |
|---|---|---|---|
| Residential overall ratio (assessment level)* | Property containing 1, 2 or 3 dwelling units. Median assessment ratio 0.950 – 1.050 | 99.9 | 99.8 |
| Non-residential overall ratio (assessment level) | All other property. Median assessment ratio 0.950 – 1.050 | 97.5 | 97.0 |
| Coefficient of dispersion** for single family dwellings | Property containing 1, 2, 3 dwelling units Coefficient of dispersion 0 – 15.0 | 6.3 | 6.2 |
| Coefficient of dispersion for non-residential | All other property Coefficient of dispersion 0 – 20.0 | 11.3 | 10.5 |
*The common or overall ratio of assessed values to market values.
**The average percentage deviation from the median ratio.
Assessment is committed to providing timely communications and ensuring transparency of the assessment process through its extensive customer service framework and public awareness campaigns.
Property and business taxes are calculated based on assessment values. It is important that property and business owners have access to the necessary tools and resources to understand and review their assessment to ensure accuracy and that they pay the correct amount of taxes.
2924 11 Street N.E., Calgary
Please call in advance to book an appointment.
The City of Calgary, Assessment (#8002), P.O. Box 2100, Stn. M, Calgary AB, T2P
Assessment offers a year-round inquiry service staffed by valuation professionals, and two consultation periods to assist customers with their assessments.
By providing accessible, convenient customer support, we hope to increase taxpayer understanding of the assessment process, facilitate opportunities for two-way dialogue and resolve customer concerns.
The 60-day Customer Review Period provides owners with the opportunity to understand, review and inquire about their assessment. Customers can also access and review their assessment online at calgary.ca/assessmentsearch. Online tools allow customers to review sales of similar properties and compare for equity with the same real estate market information used to prepare 2013 property assessments.
Prior to the mail-out of assessments, we conduct a public awareness campaign to inform customers about the Assessment Roll. The 2013 campaign began in December 2012 and ran through March 2013, when property or business assessment notices were sent to almost half a million customers. In 2013, the following communication channels were used to reach customers and inform them about the Assessment Roll.
print
online
social media
radio advertising
television advertising
media briefingHeld annually in the fall, several months before the Assessment Notice mailing, the Advance Consultation Period provides non-residential property and business owners the opportunity to receive their preliminary assessment value and exchange information with us prior to the Assessment Rolls being finalized. Sharing preliminary assessment information provides non-residential property and business owners greater ability to manage their assessment and tax planning activities while enabling Assessment to continue preparing fair and equitable assessments.
The Advance Consultation Period for the 2014 Assessment Roll ran from Oct. 7 - Nov. 7, 2013. It included an industry representative forum for tax agents and corporate representatives to share:
Customers rely on the information and services offered by Assessment, as confirmed by the number of inquiries and visits to the Assessment Search website. Incoming inquiries and response times are monitored daily to ensure prompt and accurate customer service is provided to citizens.
Customer inquiries made by phone, fax, mail or in person
8,808
Inquiries
3,624
Inquiries
1,700
Assessor appointments
469,602
Inquiries
Customer inquiries made by phone, fax, mail or in person
2,109
Assessor appointments
1,125
Assessment information requests processed (Assessment explanation supplement reports)
126,961
2013 web visits to Assessment Search (60 days)
99%
Inquires closed by end of Customer Review Period
9 seconds
Average wait time
95%
Per cent of phone calls resolved
4,994
Inquiries
1,700
Assessor appointments
45
Tax agent representatives in attendance at 2014 Industry Representatives Forum
The 2013 Advance Consultation Period had the highest level of participation since it started seven years ago.
Assessment is committed to continuously improving the customer experience and not only meeting, but exceeding citizens’ expectations. Citizen satisfaction results continue to improve and the 2013 customer satisfaction survey results showed the highest scores to date.
An important component of Assessment’s role is to defend assessments under complaint to ensure equity for all property and business owners. Fortunately, our steadfast commitment to product quality has resulted in a substantial decrease in complaints.
In addition, we strive to address assessment issues outside the formal complaint process and encourage customers to contact our customer service line at 403-268-2888 with any concerns they may have about their assessment.
In 2013, there were 3,726 complaints filed against assessments. This represents approximately 17.4 per cent of total taxable assessed residential and non-residential value or 0.6 per cent of the total taxable assessed residential and non-residential accounts.
Reducing the number of complaints allows Assessment to mitigate financial risks to The City’s revenue stream, while also allowing assessors to spend more time preparing and communicating assessments to better serve customers.
| Account type | Number of taxable accounts | Total number of complaints | Percentage of all complaints | Confirmed by Assessment Review Board
# % |
Revised by Assessment Review Board decision
# % |
Resolved without hearing
# % |
|---|---|---|---|---|---|---|
| Property | 460,509 | 2,836 | 76.1% |
1,151
40.6%
|
797
28.1%
|
889
31.3%
|
| Residential | 445,078 | 960 | 25.8% |
475
49.5%
|
209
21.8%
|
267
27.8%
|
| Non-Residentia | 14,823 | 1,861 | 49.9% |
672
36.1%
|
586
31.5%
|
613
32.9%
|
| Farm Land | 608 | 15 | 0.4% |
4
26.7%
|
2
13.3%
|
9
60.0%
|
| Business | 26,857 | 890 | 23.9% |
483
54.3%
|
96
10.8%
|
300
33.7%
|
| Totals | 487,366 | 3,726 | 100.0% |
1,634
43.9%
|
893
24.0%
|
1,189
31.9%
|
| Value range | Number of accounts | Per cent of total accounts | Number of complaints within the value range | Per cent under complaints within the value range | Per cent of total complaints |
|---|---|---|---|---|---|
| 0 – 199,999 | 75,796 | 17% | 255 | 0.3% | 27% |
| 200,000 – 399,999 | 199,270 | 45% | 105 | 0.1% | 11% |
| 400,000 – 599,999 | 120,664 | 27% | 133 | 0.1% | 14% |
| 600,000 – 999,999 | 37,255 | 8% | 198 | 0.5% | 21% |
| 1,000,000+ | 12,093 | 3% | 269 | 2.2% | 28% |
| Totals | 445,078 | 100% | 960 | 0.2% | 100% |
| Value range | Number of accounts | Per cent of total accounts | Number of complaints within the value range | Per cent under complaints within the value range | Per cent of total complaints |
|---|---|---|---|---|---|
| 0 – 499,999 | 6,108 | 41% | 165 | 2.7% | 9% |
| 500,000 – 999,999 | 2,478 | 17% | 108 | 4.4% | 6% |
| 1,000,000 – 4,999,999 | 4,377 | 30% | 663 | 15.1% | 36% |
| 5,000,000 – 9,999,999 | 884 | 6% | 327 | 37.0% | 18% |
| 10,000,000+ | 976 | 7% | 598 | 61.3% | 32% |
| Totals | 14,823 | 100% | 1,861 | 12.6% | 100% |
| Value range | Number of accounts | Per cent of total accounts | Number of complaints within the value range | Per cent under complaints within the value range | Per cent of total complaints |
|---|---|---|---|---|---|
| 0 – 29,999 | 11,597 | 43% | 53 | 0.5% | 6% |
| 30,000 – 59,999 | 6,186 | 23% | 79 | 1.3% | 9% |
| 60,000 – 99,999 | 3,294 | 12% | 80 | 2.4% | 9% |
| 100,000 – 199,999 | 2,989 | 11% | 180 | 6% | 20% |
| 200,000+ | 2,791 | 10% | 498 | 17.8% | 56% |
| Totals | 26,857 | 100% | 890 | 3.3% | 100% |
In 2012, Council decided to consolidate Calgary’s business tax with the non-residential property tax.
The process will transfer Calgary’s business tax revenue to the non-residential property tax through a series of incremental tax revenue transfers over seven years.
The process began in 2013 with a zero per cent revenue transfer and will end with the elimination of the business tax in 2019.
In order to mitigate the impact to not-for-profit organizations that benefit a limited group, Assessment developed a plan to offer organizations business tax exemption through the Business Tax Bylaw. This allows more time to plan and budget for the effects of consolidation. For this group, the effect of business tax exemptions will be extended throughout the 2014 and 2015 tax years by issuing property tax refunds.
The consolidation process is expected to enhance Calgary’s economic competitiveness and attractiveness and continue to make our city a great place for businesses to start and flourish.
| Year | Non-residential property tax change | Business tax change |
|---|---|---|
| 2012 | No change – Business Tax Consolidation starts in 2013 | No change – Business Tax Consolidation starts in 2013 |
| 2013 | 0% | 0% |
| 2014 | 2.8% | -10% |
| 2015 | 2.8% | -10% |
| 2016 | 5.6% | -20% |
| 2017 | 5.6% | -20% |
| 2018 | 5.6% | -20% |
| 2019 | 5.6% | -20% |
| Totals | 28% | -100% |
The business tax, for business tax revenue purposes, will be eliminated in 2019.
*This is an estimate of the tax implications, reflecting 2013 tax rates. The annual tax implications will vary based on changes to property/premises details, annual re-assessment shifts and/or annual Council or provincial tax rate adjustments.
In June 2013, Calgary experienced the most devastating flood in recent history. A large number of properties were damaged and approximately 80,000 citizens were evacuated.
Understanding that the flood would affect property assessment values, Assessment began planning a course of action. Through aerial imagery and visual inspections, it identified residential properties that had a high likelihood of sustaining physical damage from overland flooding.
Information requests were mailed to 3,290 property owners in September 2013 to obtain details about changes in the property’s physical condition due to the flood.
To identify the extent of damage, Assessment employees visited streets in each community that experienced overland flooding. Assessors also analyzed market activity and reviewed the condition of affected properties.
Of Calgary’s 450,300 residential property accounts, approximately 1,900 properties were identified as requiring a market value reduction due to the flood. Adjustments to market value were made based on the extent of damage sustained and the physical condition of each affected property as of December 31, 2013. These adjustments are reflected in the 2014 assessed values of affected properties.
Flood
3,290
Information requests mailed to potentially affected property owners
193
Customer flood inquiries
1,900
Approximately 1,900 properties were identified and received a market value reduction due to the flood
To ensure success and work towards our vision of being a leading market value assessment jurisdiction, we’ll continue to prepare for the future. Customer service remains a top priority and we will continue to:
engage customers
monitor the market place
provide helpful and responsive service
We look forward to growing and meeting the challenges of a dynamic and changing city. We anticipate some exciting changes in 2014 as we continue to move more customer services online and improve our operating systems to keep up with increasing account levels.
As always, the dedication and hard work of our employees will enable us to achieve our ambitious goals in 2014 and the years ahead.