Overview of Property Taxation in Alberta
What is Property Tax?
Property tax is a municipal tax levied on real estate based on the assessed value of the property. In Alberta, municipalities assess and collect property taxes to fund local services such as roads, utilities, emergency services, and maintenance of public spaces.
Who Pays Property Tax in a Condominium Corporation?
Individual unit owners pay property taxes on their titled condominium units.
The condominium corporation may be subject to property taxes for certain common property elements that are titled to the corporation or used for commercial purposes.
The assessment and taxation of condominium properties fall under the Municipal Government Act (MGA), which governs municipal tax powers in Alberta.
Types of Condominium Assets Subject to Property Tax
Individual Condominium Units
Each titled unit is assessed separately, and unit owners receive property tax bills directly from the municipality.
Titled Common Property
If a condominium corporation holds title to specific common property assets, such as:
Guest suites.
Rental storage spaces.
Parking stalls (if individually titled to the corporation).
Commercial spaces within a mixed-use condominium.
These assets may be subject to municipal property tax as they are considered taxable real estate holdings.
Exempt Common Property
Common property that is not separately titled to the condominium corporation (e.g., hallways, lobbies, mechanical rooms, recreational areas) is not subject to property tax.
The Municipal Government Act (MGA) states common property of a condominium plan, to the extent that the common property is used only by the owners in the condominium plan, is exempt from assessment and taxation. This exemption ensures that property taxes are only levied on assets generating income or held separately from the common interest of unit owners.
Exemptions and Special Tax Considerations for Condominium Corporations
Residential vs. Non-Residential Property Tax Rates
Residential condominiums are taxed at municipal residential rates.
Commercial spaces or titled assets used for income generation may be taxed at higher non-residential rates.
Partial Tax Exemptions
If a condominium corporation leases out space (e.g., renting out a common room for events), the leased portion may be assessed separately for taxation.
Municipalities may grant partial exemptions for non-profit condominium corporations under certain conditions.
Assessment Process and Appeal Procedures for Property Tax
Property Assessment Process
Municipalities conduct annual property assessments to determine taxable values.
Assessments are based on market value, property use, and income generation potential.
Condominium corporations with taxable assets receive assessment notices before tax bills are issued.
Appealing a Property Assessment
If a condominium corporation disagrees with an assessment, they may file an appeal with the Municipal Assessment Review Board (ARB).
Appeals must be filed within the designated municipal deadline and must include evidence (e.g., comparable property values, income statements).
