Assessment Class
The recently enacted City of Calgary Charter, 2018 Regulation (the “City Charter”) changed the definitions of “non-residential” and “residential” as of January 1, 2018.
These new definitions only determine which municipal property tax rate is applied to a property. The provincial property tax rate is applied in accordance with the definitions of “non-residential” and “residential” from the Municipal Government Act (MGA). You can find the current property tax rates.
| Property Taxes | |
|---|---|
| Property Taxes: Municipal Property Taxes (City Charter) | undefined: Provincial Property Taxes (MGA) |
| Property Taxes: The City Charter assessment class is used to determine the appropriate municipal property tax rate that is applied to a property’s assessment or apportioned assessment (if more than one assessment class applies to the property). According to the City Charter when preparing an assessment of a property, the assessor must assign one or more of the following assessment classes to the property:
A property’s assessment class under the City Charter and MGA can be different. When this occurs the City Charter assessment class is used to determine the appropriate municipal tax rate only for the assessment or apportioned assessment (if more than one assessment class applies to the property). |
undefined: According to the Municipal Government Act, one or more of the following assessment classes are to be assigned to the property:
When the MGA assessment class differs from the City Charter assessment class, the MGA assessment class is used to determine the provincial property tax rate for the assessment or apportioned assessment (if more than one assessment class exists). |
As of January 1, 2018, certain properties can be classified as one property class under the Municipal Government Act (MGA) and another under the City Charter. For example, under the City Charter, residential property no longer includes “a property or a portion of a property on which industry, commerce or farming operations currently takes place”:
| Assessment Class | Municipal Property Taxes | Provincial Property Taxes |
|---|---|---|
| Assessment Class: Residential | Municipal Property Taxes: A property or portion of a property currently used for permanent living accommodation. A vacant property where permanent living accommodations is the primary permitted use for that land assigned as a land use designation under a land use bylaw passed by a municipal council. A property or portion of a property where permanent living accommodations is a permitted or discretionary use assigned as a land use designation for that land use bylaw passed by a municipal council if a development permit has been issued by the municipality. |
Provincial Property Taxes: A property that is not classed as farmland, machinery and equipment or non-residential. |
| Assessment Class: Non-Residential | Municipal Property Taxes: A property or a portion of a property on which industry, commerce or farming operations currently take place. A vacant property that has more than one primary permitted use assigned as a land use designation under a land use bylaw passed by council. |
Provincial Property Taxes: A property or a portion of a property on which industry, commerce or other use takes place that does not include farm land or land that is used for permanent living accommodations. |
Property Tax Calculations
When the MGA assessment class differs from the City Charter assessment class, your assessment notice will reflect your property’s assessment class under the MGA, for provincial tax purposes, and assessment class under the City Charter for municipal tax purposes. Your municipal property taxes will be calculated by applying the applicable municipal tax rate to your property’s assessed value, and your provincial property taxes will be calculated by applying the applicable provincial tax rate to your property’s assessed value. For example, if your property is classified as 100% non-residential under the Charter and 100% residential under the MGA, your municipal property taxes will be calculated using the non-residential municipal tax rate, and your provincial property taxes will be calculated by applying the residential provincial tax rate.