On April 23, the county of St. Paul received a comprehensive presentation detailing the assessment of designated industrial property and non-designated industrial properties within its jurisdiction, revealing an overall uptick in property assessments.
Assessments, conducted annually for taxation purposes, play a crucial role in determining municipal revenues and funding allocations. Centralized Industrial Property Assessment presented the county’s designated industrial property assessment, revealing that 331 inspections were conducted last year, encompassing approximately 47 percent of the county’s industrial properties.
Provincial Assessor and CIPA Director Mike Minard disclosed that Alberta’s provincial roll for both linear and industrial properties surged to $196 billion this year, reflecting an increase of around six percent from the previous year. This substantial growth translates to approximately $2 billion in tax revenue for Alberta municipalities and contributes $339 million toward the Alberta School Foundation Fund.
In the county of St. Paul specifically, this year’s designated industrial assessment soared to $777 million, marking an increase from $763 million in 2023.
Minard also highlighted factors contributing to future assessment increases, such as the expiration of the three-year tax holiday, which exempted new wells and pipe assets from taxation to stimulate industrial development. The conclusion of this tax holiday is anticipated to result in an influx of new pipes and wells into the assessment roll next year.
Addressing inquiries from county officials, Minard affirmed that while the assessed value of wells may depreciate over time based on production, pipelines maintain their assessed value without depreciation. Additionally, he confirmed that power generation technologies like solar panels depreciate in assessment value, aligning with machinery equipment depreciation schedules.
Accurate Assessment Group presented the county’s non-designated industrial property assessment for the 2024 Tax Year, reporting a six percent increase in residential assessments from 2022 to 2023. This increase, attributed to market inflation and new construction, underscores growing confidence in rural properties.
Despite the surge in property assessments, mill rates for the county of St. Paul are expected to remain relatively stable, with an increase of less than one percent across the board. County Reeve Glen Ockerman attributed the rise in residential assessment to an influx of people migrating to Alberta and rural areas, a sentiment echoed by assessment specialist Bob Daudelin, who emphasized the confidence in rural property evident in the assessment trends.