Farmland as defined in the Municipal Government Act and the Matters Relating to Assessment and Taxation Regulation means “land used for farming operations as defined in the regulations”, and is assessed based on its productivity level based on regulated rates developed by Alberta Municipal Affairs.
Farming Operations are defined in the MRAT as:
“the raising, production and sale of agricultural products and includes
i.) Horticulture, aviculture, apiculture, and aquaculture,
ii.) The production of horses, cattle, bison, sheep, swine, goats, fur bearing animals raised in captivity, domestic cervids within the meaning of the “Livestock Industry Diversification Act”, and domestic camelids, and
iii.) The planting, growing and sale of sod.”
Farm Buildings are defined in the Matters Relating to Assessment and Taxation Regulation are “any improvement other than a residence, to the extent it is used for farming operations”.
How is farmland valued for assessment?
Farmland is currently assessed on the basis of its agricultural use value. All farmland is rated on the basis of its ability to produce income from the growing of crops and/or the raising of livestock. The productive value of farmland is determined using a process that sets a value for the best soils, and then makes adjustments for less than optimum conditions such as stones, the presence of sloughs, or topography not conducive to farming practices.
How do we qualify for farm status?
In order to qualify for farm status you must meet the definition of farming operations as defined in the Municipal Government Act and the parcel must qualify as described in the MGA and the Regulations. If you do think that your property qualifies for farm status please contact the Assessment Department to discuss with an assessor at 780-513-3952 or possibly have an assessor come to view your property at some point during the year.
What is the Rural Assessment Policy (RAP)?
(RAP) Rural Assessment Policy - In a rural municipality, a residence on farmland is partially exempted from assessment, based on the assessed value of the farmland. The land and/or residence must be privately owned by the same owner or leased from the province or municipality. Land that is leased from private owners does not qualify for an exemption.
The maximum exemption that a residence can receive on its assessment is $61,540. If there is more residences in the farm unit, each additional residence may receive an exemption of up to $30,770. Example: A farmer has a house with an assessment of $200,000, and 6 quarters of land with a total assessment of $120000, the farmer would qualify to receive the full RAP exemption towards his house assessment.
$200,000 - $61540 = $138,460 taxable assessment