Unit 7-5: Municipal govt act

Question 1

MGA

Answer 1

Determines how property in AB may be used (land planning)

Municipality is city, town, village, district etc.
3500+ have to adopt the ACT

Question 2

Planning process

Answer 2

MGA
MG plan
area structure/redevelopment plan
land use bylaw

Question 3

Land use bylaw

Answer 3

prohibit, regulate, control use of land and buildings

Question 4

Residential

Answer 4

Designated “R” and # or letter
e.g., R-1 is single-detached dwelling

Question 5

Commercial

Answer 5

Subcategories C-1, CC etc.

Question 6

Industrial and special districts

Answer 6

make sure allowed on the land zoned

Question 7

Permitted use

Answer 7

get a permit if development is aligned with land use bylaw

Question 8

Discretionary

Answer 8

generally appropriate but not necessarily compatible with surrounding uses

Question 9

Permits

Answer 9

Development: overall use of the land
Building: specific project improvement to property

Question 10

Basement suites

Answer 10

Legal: meets requirements and has permits

Illegal: subject to closure

Non-conforming suite: used to meet bylaw but not now. if not used for 6 months it must conform to new bylaw

Question 11

Building codes

Answer 11

Standards for electrical, fire alarms, extinguishers, emergency routes, lighting, ventilation

Question 12

Assessment

Answer 12

process of determining property value for taxation

Question 13

Taxation

Answer 13

process of applying tax rate to assessed value

ad valorem principle: according to value

Question 14

Market value

Answer 14

price a property might sell for on open market

valuation standard used to determine property assessments using a mass appraisal system

Question 15

Property valuations

Answer 15

Linear: oil and gas wells, railways

Manufactured: not land

agricultural: not assessed using market value approach

Question 16

Valuation date

Answer 16

when all assessments must be completed - july 1st

Question 17

Property appraisal

Answer 17

estimate market value (see RECA info bulletin)

Question 18

Mass appraisal

Answer 18

preparing assessments for group of properties

Question 19

Municipal tax rate

Answer 19

percentage of assessed value of property

expressed as mill rate (per thousand): 1 means $1 per $1000 of assessed value

Question 20

Property tax calculation

Answer 20

Property assessment x Mill rate

Tax rate of 0.01 has mill rate of 10

Question 21

Setting mill rate

Answer 21

Amount of taxes to raise / total value of assessed properties = mill rate

$1,000,000 to be raised / $50,000,000 assessed value = 0.02 or 20 mills

Question 22

Property tax adjustments

Answer 22

Part of closing adjustments
Seller credits buyer for portion related to their ownership between Jan 1 and Jun 30th. Closing date is seller responsibility

BUT if closing date btwn Jun 30 and Dec 31 buyer credit seller for pre-paid taxes

Question 23

Tax payments

Answer 23

Lump sum: paid in full
Installment: monthly basis
Lender: can include in mtg payments (PIT = principal, interest, tax)

Question 24

Local improvement tax

Answer 24

Levy against a property; increases taxes

Question 25

Business taxes

Answer 25

support delivery of transit, police, land use planning, parks etc total revenue required from business tax / total business assessment = business assessment e.g., $7.5M needed; assessment was $100M; so 0.075 is tax rate

Question 26

Business assessment

Answer 26

value placed on premises for the purpose of operating business Direct sale comparison: similar props that have sold Income: rental prop income and expenses (commercial and industrial) Cost: base values using current cost for improvements, less depreciation, plus land

Question 27

Business tax equation

Answer 27

Business assessment x business tax rate = tax payable e.g., $56,000 assessed value x 0.075 = $4200 payable