A LOOK AHEAD TO
SAMA AND THE 2013 REVALUATION THREE PROPERTY VALUATION APPROACHES
The Saskatchewan Assessment Management Agency There are three generally accepted appraisal techniques
(SAMA) is the recognized leader of property assessments used to value property that falls within the market
in Saskatchewan. The Agency is responsible for a $94 valuation standard: the cost approach, the sales
Billion property assessment base, which is used by local comparison approach and the property income (rental)
governments to levy a $1.4 Billion property tax base. approach.
SAMA oversees a full revaluation every four years of all The cost approach estimates the replacement cost of a
properties in the province to implement a new base date. building, less depreciation, adding land value primarily
The base date is the valuation date to which all based on sales. This approach is most useful when
assessments are related. there are few comparable sales. The cost approach will
continue to be used in smaller municipalities and for
The 2009 Revaluation, the current revaluation in specific property types across Saskatchewan.
Saskatchewan, used June 30, 2006 for a base date.
January 1, 2011 will be the base date for the upcoming The sales comparison approach is based on the
2013 Revaluation. concept of valuing property based on what similar
property in the same market area is selling for. This
The 2013 Revaluation will continue to use the market approach is appropriate for determining property
valuation standard for the assessment of residential and assessments for areas and property types with active
commercial properties. The regulated property sales markets such as residential property in medium to
assessment valuation standard will continue to be used large cities.
for the assessment of agricultural land, heavy industrial
property, railway roadway, pipelines and resource The property income (rental) approach to value is
production equipment (mines and oil and gas wells). based on the premise that the value of a property is
directly related to the rental income it will generate. The
For the 2013 Revaluation, all property types will have assessment appraiser analyzes the property’s ability to
their values updated in relation to the January 1, 2011 produce a future income stream, and then estimates the
base date, regardless of being subject to a market property’s value. The property income (rental) approach
valuation standard or a regulated property valuation provides the most fair, reliable and accurate assessed
standard. values for commercial property and rental apartments in
areas where there are active lease and rental markets.
The 2013 Revaluation will seek to stabilize the
assessment system from a governance perspective by To ensure assessed values are as accurate as possible,
not introducing any major changes to assessment policy. SAMA’s professional assessment appraisers collect and
analyze available cost, market and property rental income
information and use the valuation approach that provides
the best estimates of value for each property type, based
on available information.
PRELIMINARY ASSESSED VALUES FOR 2013 REVENUE NEUTRALITY
Since the 2009 Revaluation and its base date of June While a revaluation updates property assessments, the
30, 2006, the province of Saskatchewan has overall impact on property tax is designed to be revenue
experienced unprecedented economic growth, and the neutral on a municipal basis.
value of property in the province is no exception.
Provided that a municipality’s budget requirements
The result of this active and strong real estate market in remain the same in a revaluation year as in the previous
Saskatchewan will bring with it significant increases to year, changes in taxable assessments will only result in
property assessments that will be reported with the 2013 changes to tax levels if a property’s assessment
Revaluation. increases or decreases substantially, relative to the
average for that jurisdiction.
Based on provincial averages, preliminary numbers
indicate that residential and resort residential Based on the current provincial government practice of
properties will, on average, be increasing approximately establishing common provincial education mill rates,
double over their assessed values from the 2009 education revenue neutrality and potential education tax
Revaluation. It is important to note that this is the shifts will be based on how a specific assessment
anticipated increase to the provincial average for change relates to the overall provincial average increase
residential and resort property. Specific local increases in assessments for that same category of properties.
in residential property values between 2009 and 2013
may vary substantially from this figure depending on the
overall trend in market values between June 30, 2006
(the base date for the 2009 revaluation) and January 1,
2011 (the base date for the 2013 revaluation).
Similarly, agricultural land will see an increase of
approximately 50% to assessed values, which reflects
the 2006 to 2011 change in the provincial average selling
price of agricultural land.
NEW PUBLICATIONS SAMA’s 2011 Cost Guide is a non-regulated
document to be used as a reference for SAMA
The SAMA Board of Directors has approved two new assessment appraisers and the public regarding the
publications for use in preparing 2013 Revaluation application of the cost approach for the valuation of
assessments: vacant urban land, residential property and selected
commercial property for the 2013 Revaluation.
1. Saskatchewan Assessment Manual
(2011 Base Year) The Market Value Assessment in Saskatchewan
2. SAMA’s 2011 Cost Guide Handbook provides guidance for the assessment of
market valuation standard properties with a focus to
SAMA also uses the Market Value Assessment in commercial property and the property income (rental)
Saskatchewan Handbook for valuing properties to meet approach.
the market valuation standard.
Similar to the SAMA’s 2011 Cost Guide, the handbook
SAMA’s stakeholders, through the Agency’s advisory is a non-regulated document. It is intended as a
committees, reviewed and contributed to these reference tool for assessment appraisers and the public
publications. The Saskatchewan Assessment Manual in determining assessments for the 2013 Revaluation.
has the force of regulation and must be complied with,
while the Cost Guide and Market Value Handbook do Hard copies of these publications will be provided for a
not – they are documents within the market valuation fee that covers the cost to print the documents and any
standard. applicable licence fees, and will include an update
There are two parts in the Saskatchewan Assessment
Manual. Part I, “Median Assessed Value to Sale Price The Market Value Assessment in Saskatchewan
Ratio,” and Part II, “Regulated Property.” Part I of The Handbook, portions of the Saskatchewan Assessment
Saskatchewan Assessment Manual relates to Quality Manual (2011 Base Year) and SAMA’s 2011 Cost Guide
Assurance and applies to properties that fall under the for which a licence fee is not payable, are available free
market valuation standard in the Municipal Acts. Part II of charge on SAMA’s Internet site (www.sama.sk.ca).
of the manual contains the formulas, rules and
procedures that must be followed to value properties
that fall under the regulated property assessment
standard in legislation.
The five chapters in Part II of the Saskatchewan
Assessment Manual are used to value agricultural land,
heavy industrial property, railway roadway, pipelines and
resource production equipment (mines and oil and gas
OTHER COST GUIDES LOOKING FORWARD TO 2013 –
When applying the cost approach, assessment service
providers may refer to publications from Marshall & SAMA will be submitting preliminary assessment values
Swift/Boeckh, LLC., a recognized industry leader in to the province on or before April 1, 2012. The
costing of commercial and residential property. SAMA preliminary 2013 property values will then be distributed
uses the Marshall Valuation Service for the majority of to municipalities 90 days after the April 1, 2012
commercial properties valued using the cost approach. submission to government.
The Residential Cost Handbook can be used for
estimating replacement costs for both single and multi- It is SAMA’s goal to communicate value changes well
family residences. SAMA’s Cost Guide, the Handbook ahead of the 2013 Revaluation, allowing municipalities
and Marshall and Swift’s Marshall Valuation Service and government time to review and provide feedback on
complement each other in regards to the application of the preliminary values and generate policies and
the cost approach. budgets with as much information as possible.
SAMA expects government to announce the 2013
percentages of value for each property tax class in early
fall 2012, communicating them with SAMA and other
independent assessment service providers so that we
can prepare final assessed values for 2013.
The Agency will complete the final assessments and be
prepared to send out updated values by the end of
2012. We will work closely with our client municipalities
to meet their needs regarding these new values. SAMA
will be completing maintenance in the last part of 2012
to be ready to implement the revaluation in 2013.
The Agency will be making use of SAMAView, our
website application that allows the general public
access to individual property assessments for all SAMA
client jurisdictions, to communicate assessed values for
the 2013 Revaluation. However, SAMA will not post any
final 2013 Revaluation property assessments before
they have been seen by government and municipalities.
QUESTIONS ON THE 2013 REVALUATION? Saskatchewan Assessment Management Agency
If you would like more information, please see the 200 - 2201-11th Avenue
Revaluation 2013 section on our website at Regina SK S4P 0J8
www.sama.sk.ca. Telephone: 306-924-8000 or 800-667-7262
If you have further questions, comments or suggestions, firstname.lastname@example.org
please contact SAMA directly: