1. Changing Tides in the Assessment and Taxation Landscape:
Review Of Municipal Government Act Amendments: Assessment And Taxation
Alvin R. Kosak
Adina Preda
Partner
Senior Associate

2. OVERVIEW Designated Industrial Property
Role of the Provincial Assessor and the Municipal Assessor
Control and Access to Information concerning Designated Industrial Property 2

3. OVERVIEW
Municipality’s right to file an Assessment Complaint about Designated Industrial Property
Jurisdiction of LARBs, CARBs and the MGB
Appeal of the LARB, CARB and MGB Decisions 3

4. OVERVIEW
The maximum 5 to 1 Tax Ratio
Brownfield tax incentives 4

5. DESIGNATED INDUSTRIAL PROPERTY (“DIP”)
Facilities regulated by the Alberta Energy Regulator, Alberta Utilities Commission, or the National Energy Board;
Linear Property;
Property designated as a major plant by the Regulations;
Land and improvements that contain the designated industrial property 5

6. THE ROLE OF THE PROVINCIAL ASSESSOR/MUNICIPAL ASSESSOR
Provincial Assessor: responsible for assessment of designated industrial property
Municipal Assessor: responsible for assessment of all other property in a municipality 6

7. DESIGNATED INDUSTRIAL PROPERTY – PRACTICAL CONSIDERATIONS
If municipality utilizes a contract assessor, the scope of the contract services will need to be revisited 7

8. DESIGNATED INDUSTRIAL PROPERTY – PRACTICAL CONSIDERATIONS
The Provincial assessor is the legal custodian of designated industrial property assessment information 8

9. DESIGNATED INDUSTRIAL PROPERTY – PRACTICAL CONSIDERATIONS
Potential issues where a municipality files an assessment complaint respecting designated industrial property 9

10. ASSESSMENT REVIEW BOARDS
Municipal Government Board
(“MGB”)
Has jurisdiction to hear complaints about assessments for designated industrial property 10

11. ASSESSMENT REVIEW BOARDS
Local Assessment Review Board (“LARB”)
Has jurisdiction to hear complaints concerning:
residential property with 3 or fewer dwelling units
farm land
local improvement tax 11

12. ASSESSMENT REVIEW BOARDS
Composite Assessment Review Board (“CARB”)
Residential property with 4 or more dwelling units
Non-residential property that is not farmland or designated industrial property
Property tax notices, business tax notices and improvement tax notices
A designated officer’s decision respecting a brownfield tax incentive tax exemption or deferral 12

13. APPOINTMENT OF LARB AND CARB MEMBERS
Municipal Council must:
Appoint at least 3 persons as members of the LARB, and 2 persons as members of the CARB
Designate one of these members as the chair of the LARB and CARB respectively 13

14. APPOINTMENT OF LARB AND CARB MEMBERS
The Chair of the LARB or CARB must convene a panel of members to hear a complain 14

15. APPEAL OF DECISIONS OF ASSESSMENT REVIEW BOARDS
Judicial Review, rather than Statutory Appeal
60 days, rather than 30 days after date of decision
Leave to Appeal is no longer required
Scope of appeal is wide:
No longer limited to questions of jurisdiction or law
Can now appeal findings of fact, or mixed fact and law 15

16. MAXIMUM TAX RATE RATIO: WHAT IT IS
New section 358.1
Imposes “cap”: non- residential tax rate cannot be more than 5 times higher than residential tax rate 16

17. MAXIMUM TAX RATE RATIO: WHAT IT IS
Grandfathering provision applicable to “non-conforming municipality”
Any municipality with tax ratio higher than 5:1 as of May 31, 2016 17

18. MAXIMUM TAX RATE RATIO: WHAT IT MEANS
Non-conforming municipalities
No ability to raise non-residential tax rate without also raising residential tax rate
Possibility that “grandfathering” provision will be phased out 18

19. MAXIMUM TAX RATE RATIO: WHAT IT MEANS
Conforming municipalities
Ensure that future tax rates conform to 5:1 ratio
All municipalities
Ensure accuracy of non-residential property assessment 19

20. BROWNFIELD PROPERTY TAX INCENTIVES
Brownfield property – minimum requirements (s ):
Industrial or commercial property (except designated industrial property); and
Property that, in the opinion of the municipal council:
Is or possibly is contaminated;
is vacant, derelict or under-utilized, and
is suitable for development or redevelopment for the general benefit of the municipality 20

21. BROWNFIELD PROPERTY TAX INCENTIVES
Brownfield property tax incentives can be granted in one of two ways: 
1) By bylaw
2) By agreement 21

22. BYLAW STREAM Contents of bylaw:
must identify brownfield properties in respect of which an application can be made
may set (additional) criteria to qualify for exemption or deferral of taxes 22

23. BYLAW STREAM Contents of Bylaw (con’t):
must specify the taxation year(s) during which identified properties may qualify for an exemption or deferral
must specify any conditions which, if breached, will result in cancellation of the exemption or deferral (and the taxation years in which the condition(s) apply) 23

24. BYLAW STREAM Procedural requirements Administrative requirements
before second reading, Council must give notice of and then hold a public hearing with respect to the proposed bylaw (MGA, sections 606 and 230)
Administrative requirements
after bylaw is passed, owner of brownfield property identified in the bylaw can apply for an exemption or deferral 24

25. BYLAW STREAM – ADMINISTRATIVE PROCESS
Application for exemption is reviewed by a designated officer
if satisfied that the property meets the requirements of the bylaw, designated officer may issue a certificate granting the exemption or deferral 25

26. BYLAW STREAM – ADMINISTRATIVE PROCESS
If the designated officer determines that property has ceased to meet the requirements of the bylaw, the officer must cancel the exemption or deferral for the taxation year in which the requirements are not met.
If not cancelled, the exemption or deferral remains in force subject to conditions and criteria on which it was granted 26

27. BYLAW STREAM – COMPLAINTS
If the designated officer refuses to grant an exemption or deferral, notice of and reasons for the refusal must be given to property owner
Property owner has right of complaint to CARB (within 60 days) 27

28. AGREEMENT STREAM - REQUIREMENTS
Council may enter into an agreement with the owner of a brownfield property  full or partial exemptions or deferrals of tax
Agreement must state: 
Taxation years to which the exemption or deferral applies (not retroactive); 
Conditions on which the exemption or deferral is granted; and 
Consequences, rights and remedies arising in the event of any breach 28

29. AGREEMENT STREAM - REQUIREMENTS
Before voting on a resolution to enter into an agreement of this nature, Council must give notice of and hold a public hearing with respect to the proposed agreement
There is no right of complaint 29

30. BROWNFIELD INCENTIVES – PRACTICAL CONSIDERATIONS
Council has more direct control over exemptions under agreement stream
Downside: investment of Council resources (reviewing agreements, public hearings)
Bylaw stream may be more efficient but will require more administrative resources
Appointment of designated officer, process for vetting applications under bylaw, etc. 30

31. BROWNFIELD INCENTIVES – PRACTICAL CONSIDERATIONS
Under both streams, consider on- going compliance issues
Monitoring for breach of conditions
Enforcement if breach 31

32. ALVIN R. KOSAK ADINA PREDA akosak@brownleelaw.com (780) 497-4882
(780)