COMMERCIAL PROPERTY VALUATION LEGISLATION

Released on February 4, 2002

Saskatchewan businesses and municipalities could benefit from having

another method of assessing "fair market value" for commercial property.



Premier Lorne Calvert announced today the government will introduce

legislation this spring that enables the Saskatchewan Assessment Management

Agency (SAMA) and other assessing authorities to work toward introducing

the Income Approach to commercial property valuation.



"We want our assessment system to be relevant and responsive to the

realities of property owners and the communities in which we live, work and

do business," Calvert said at his address to the 97th convention of the

Saskatchewan Urban Municipalities Association.



The income approach has long been used by the appraisal industry and other

provinces to value revenue generating commercial property. The approach

estimates a property's rental income and not business or personal income.

Currently in the province the assessed value of commercial property is

determined by using just the replacement cost approach.



The municipal and commercial sectors and assessing authorities have had the

opportunity to provide the province with comments and suggestions to refine

the legislative amendments which:



Enable the use of the income approach, and other assessment

methods, once these methods have been approved for use and adopted

by SAMA through the assessment manual;



Enhance the ability of assessors to collect the information

necessary to use these new methods, including increasing the

penalties and fines for non-compliance; and



Provide additional measures that safeguard information provided for

assessment purposes from improper use, access and disclosure

throughout the assessment and appeal process.



Many in the business, commercial and municipal sectors who have sought

improvements to the valuation of commercial property for some time see the

income approach as a way to improve property assessments while maintaining

fairness and equity.



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For more information, contact:



Cathy Gourlie

Municipal Affairs and Housing

Regina

Phone: (306) 787-5959