POP: Changes to SAMA’s Income Approach to Assessment
Res #: POP 2-19M
Responses Received: Yes
Departments: Saskatchewan Assessment Management Agency
WHEREAS there has been a large decline in the oilfield in recent years;
WHEREAS the Province of Saskatchewan has undertaken delays in legislative changes, and acknowledged that it is a difficult time for the industry;
WHEREAS there are many examples that the value determined with the Income Approach is not supported by the actual cost of replacement or the reasonable market value;
WHEREAS with the current four-year revaluation cycle, having flaws in the system is unnecessarily penalizing municipalities and our ratepayers;
WHEREAS following a previous resolution indicating a need for changes to commercial assessments, those minor changes have not done enough to correct the problems;
BE IT RESOLVED that as rural municipalities are obligated to not only provide services to their ratepayers, but also look out for their best interests, an assessment system that uses the Income Approach for certain commercial properties that provinces unrealistic values not representative of the cost of investment or current market value, SARM aggressively lobby SAMA and the Province of Saskatchewan to make the necessary changes to the assessment process and valuation to better reflect the cost of investment as well as the current market value.
Responses From: The Saskatchewan Assessment Management Agency
December 4, 2019
Thank you for your November 26th letter, regarding resolution POP 2-19M. Your letter will be brought forward for review and discussion at the December 13, 2019 Board of Directors meeting and we will follow-up with you in early January 2020.
Irwin Blank – CEO of Saskatchewan Assessment Management Agency