Taxation & Assessments

Property assessment is the process of applying market value to all properties within the municipality on an annual basis for taxation purposes. Properties are re-assessed annually by assessors who review properties throughout the year. This process is regulated by the provincial government, and uses the market value approach for residential and most commercial property.

Market value assessments are based on market value as of July 1 of the year prior to the taxation year and is defined as the price a property might reasonably sell for after adequate time in an open market. Assessors calculate your assessment by looking at the property characteristics like size, type, location, style, condition, property age, lot size and the selling price of similar neighborhood properties.

Your property assessment is affected by market changes caused by supply and demand. Your assessment will also be influenced by improvements or modifications made to your property.

Assessment notices are mailed out before the tax notices each year, and appear again on your tax notice in May. The assessment notice shows the assessed value of your property, which will be used, in conjunction with the municipal and school tax rates, to calculate your property taxes.

For questions regarding your assessment, please fill out this inquiry form on the KCL Consulting website:

Assessor Contact Information:

Grant Clark
KCL Consulting Inc.
St. Albert.
Email: grant@kcl-consulting.com
Phone: 780-419-2158 
Toll Free: 1-888-419-2128

MORE INFORMATION:

Filing a Property Assessment Complaint

Each year, Town Council approves the budget needed to support Town services. Municipal property taxes are a main source of revenue that municipalities use to pay for those services.

To determine the amount of revenue required from property taxes, the Town takes the overall expenses and subtracts all other sources of revenue such as license fees, permits, user fees and provincial grants. The amount that’s left is what needs to be raised through municipal property taxes.

The Municipal Tax Rate

To help make sure each property owner contributes a fair and equitable share, the Town sets a municipal tax rate each year. To calculate this, the Town uses the total amount needed in municipal property taxes and the total assessment value of all properties in Thorsby.

Here’s how the math works: Amount needed in municipal property taxes ÷ assessment value of all properties in Leduc x 1,000 = municipal tax rate

For example:

Let’s say the Town needs to raise $30 million in municipal property taxes in order to provide all the services that have been approved in the annual budget, and the total assessment value of all the properties in Thorsby is $4 billion. Using the math above, we know: $30 million ÷ $4 billion x 1,000 = 7.500. Therefore, 7.500 is the municipal tax rate that will be used to help calculate what each property owner is required to contribute in property tax.

This means that the if the amount needed to be raised in municipal property taxes changes, or the total assessment value of all properties in Thorsby goes up or down, the municipal tax rate will also change.

Calculating Your Property Taxes

The municipal tax rate is a big factor in calculating property taxes, but it’s not the only one. It’s important to understand that your individual property assessment also plays an important role. That’s because the Town uses the municipal tax rate and your individual property assessment to calculate what you are required to contribute in municipal property taxes.

Here’s how the math works: Your individual property assessment x the municipal tax rate ÷ 1,000 = your property tax total

For example:

Meet Matt. Matt owns a home in Thorsby and this year his home is assessed at $345,000. The municipal tax rate is 12.000. Using the math above, we know: $345,000 x 12.000 ÷ 1,000 = $4,140. Therefore, Matt will contribute $4,140 in property tax this year.

Matt’s neighbour Rachel owns a home in Thorsby and this year her home is assessed at $350,000. That’s more than Matt’s house. The municipal tax rate is still 12.000. Using the math above, we know: $350,000 x 12.000 ÷ 1,000 = $4,200. Therefore, Rachel will contribute $4,200 in property tax this year. That’s more than Matt because her property assessment is higher.

The municipal tax rate gets a lot of attention, whether it increases, decreases or stays the same each year. But, no matter what happens with the tax rate, your property tax bill could fluctuate – because your property assessment most likely has changed due to market value changes from year to year. That’s why the impact of the municipal tax rate on your bill may be different from your neighbours; your property assessment is likely different from theirs.

The following main factors can change from year-to-year and each one impacts what you are required to contribute in property taxes:

• The total amount needed in municipal property taxes to pay for Town services;
• The total assessment value of properties in Thorsby;
• The municipal tax rate;
• Your individual property assessment value;
• Provincial education taxes; and
• Police funding

Your property tax bill will also include a line item for education taxes and the cost of police. These are collected by the Town on behalf of the province, and are not managed by the Town.

The Tax Installment Payment Plan (TIPP) allows property owners to pay taxes by automatic monthly debit from their bank account as opposed to annual payment. There is no charge to join the plan and you can enroll at any time throughout the year. Monthly payments are withdrawn from your account on the last business day of each month. Your bank may require additional processing time and may not show your account being adjusted until the first or second of the following month.

To enroll, complete an application form and provide a void cheque or pre-authorized form from your bank. Please note the payment is an estimate based on the previous year’s taxes until you receive the tax notice in May.

If your payment is returned from the bank, you have 15 days to make up the payment and remain on the plan. If this happens twice during a one-year period, you will be automatically removed from TIPP and any amount owing at that time will be due immediately and subject to penalties. If you need to make any changes to your personal or banking information, please contact cvanleest@thorsby.ca.

Information for homeowners looking to enroll in TIPP

The month that you take possession of a new home will affect TIPP payments. For example, if you take possession of your new home in March 2023 and your annual taxes are $3,000, you would have the following options:

Option 1

You divide your total annual taxes evenly by 12 months and make a lump sum payment for January and February. 

Option 2

You divide your total annual taxes by 10 months.

Potential adjustment in May

Whether you are a new homeowner or already set up with the TIPP program, your monthly payment will be automatically adjusted every May to account for any change to the tax rate. Notification of your new withdrawal amount will be indicated on your tax notice.

Here’s how the math works: Total yearly taxes - payments made from January to April ÷ 8 (remaining months in the year) = the withdrawal amount from May to December.

Taxes are mailed in mid-May. Failure to receive a tax notice is not reason for non-payment of taxes. You must ensure we have your correct mailing address if you move. Current year taxes that are unpaid after June 30 if not on the TIPP program are subject to the following penalties as outlined in the Town's Penalty on Unpaid Taxes Bylaw.

Penalties applied January 1st of each year on all outstanding amounts on the tax roll, remains unchanged.

• 2025 Tax Year
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