What is assessment?
How Properties are Assessed Video (SAMA - Saskatchewan Assessment Management Agency)
Your assessment or assessed value, is the dollar value placed on your property in order to decide what your portion of property taxes will be for the year. Assessment is a way of fairly distributing taxes by ensuring property owners with similar properties pay comparable taxes.
The City of Yorkton contracts the Saskatchewan Assessment Management Agency (SAMA) to provide assessments that are fair and equitable. SAMA must follow the rules and regulations of the Saskatchewan Assessment Manual as well as Provincial Legislation to calculate your assessment.
When discussing property taxes the terms “assessment” and “taxation” are often considered to be the same, however they are two very different processes.
Assessment is the process of placing a dollar value on your property to determine your portion of taxes.
Taxation is the process of applying that assessed value by the tax rate to arrive at your property taxes.
Your assessed value is not what you would sell your property for today. It is calculated to reflect the market value assessment as of January 1, 2015, which is commonly referred to at the Base Date.
Assessments in Saskatchewan are calculated using the mass appraisal methodology. Mass appraisal is the process of valuing a group of properties as of a the base date by using standard methods and statistical analysis. This ensures your assessment is done according to the fairest, most defensible system avaialable.
How are Residential properties assessed?
There are three available approaches to value, and residential property in the City of Yorkton is assessed using the sales comparison approach. Using this approach assessors calculate your property value based on sales of properties that are similar in location and characteristics to your property as of the base date. This will give you an assessment that is a reflection of the market value.
The main characteristics used to determine an assessment for a residential property include: location and lot size, construction quality, size, style, age and condition of the buildings on the property.
How are Non-Residential properties assessed?
SAMA uses three methods to assess non-residential properties:
Cost – based on the replacement cost of the building plus the value of the land,
Sales Comparison – based on sales of similar properties as of the base date;
Income (rental) – based on the building’s ability, or potential ability to generate income.
Why are there two numbers on my Assessment Notice?
The assessed value SAMA calculates for your property is the fair value, however it may not be the value your taxes are calculated on. Your property taxes are calculated on the taxable assessment, which is a percentage of the fair value. The 'percentage of value' (POV) is set by the Province and is different for various classifications of property.
Non-arable (pasture) land 45%
Residential, Muilti-Family, Condo 80%
Commericial, Industrial 100%
Railway rights of way 100%
Your property taxes are calculated on these percentage of value, or taxable value shown on your assessment notice.
To learn more about assessment, you can also visit Saskatchewan Assessment Management Agency.