Important Deadline for Alberta Property Assessments
Assessment notices for non-linear designated industrial property (DIP) were issued on February 28. Ratepayers have until May 9, 2025, to review their assessments for accuracy and decide if an appeal is required. These assessments cover land and surface inventory for DIP properties, including buildings as well as machinery and equipment. DIP properties carry a significant tax burden and should be reviewed annually.
Ratepayers are reminded that, if you wait until your property tax bill arrives, it will be too late to correct the assessment and influence the amount of tax levied. Assessments need attention and confirmation now, while the rolls remain open for review.
What We’re Seeing in 2025
Out-of-service machinery and equipment, along with the associated buildings, are not all receiving the appropriate depreciation; follow-up has been required at several client sites to correct the values. Furthermore, additional depreciation (referred to as “Schedule D”) on machinery and equipment continues to be a follow-up item.
Reviews of well and pipeline assessments were completed earlier this year and have demonstrated accurate assessment information, with the greatest impact being seen in newly constructed (i.e., from November 2021 to October 2024) assets that have been added to the assessment roll. Many companies will be facing significant tax increases related to these assessments, and we recommend a 2025 budget review to confirm monthly accruals.
Regarding electric power generation and renewable energy projects, we were pleased to see fair and equitable assessments for the many assets that we reported on behalf of our clients. Ryan project reports address specific results for individual clients.
Any assessment adjustments for our clients’ linear property portfolios have been addressed proactively through the reporting process during the review period and do not require appeals for the 2025 tax year.
Understanding Linear and Designated Industrial Property
DIP includes facilities regulated by the Alberta Energy Regulator, Alberta Utilities Commission, or Canada Energy Regulator, as well as linear properties, major plants, and related land and improvements.
Linear property is defined in Alberta’s Municipal Government Act as including “... pipelines, wells, electric power systems, and telecommunications systems.” Linear property is assessed by provincial assessors using regulated rates and depreciation schedules, which apply specifically to this type of property.
Both property types are found in a variety of industries, including oil and gas, renewable energy, electric power generation, forestry, mining, and petrochemical manufacturing.
More Information
Ryan’s recently expanded Property Tax team has extensive experience and presence in Alberta. We can help you determine if a property valuation is appropriate and, where necessary, challenge the assessment.
If you have any questions about the upcoming deadline or your 2025 property taxes, please contact your Ryan representative or click the button below.
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