REGINA - Businesses and municipalities will now have another method of determining fair market value. The provincial government will announce new legislation in the spring that allows the Saskatchewan Assessment Management Agency (SAMA) and other regulatory bodies to valuate business property through a method known as the Income Approach.

The Income Approach, which looks at the income generated by the building, has been a standard in the appraisal industry of other provinces when determining the value of successful commercial properties. Under the new method the property's rental income is estimated rather than business or personal income. Currently, Saskatchewan determines commercial property value by determining the replacement cost.

"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," Premier Lorne Calvert said at his address to the 97th convention of the Saskatchewan Urban Municipalities Association.

Other recommendations for amendment include allowing appraisers to collect as much information as is needed to determine the property value. Failure to comply will result in stiffer penalties and fines. Once the information has been gathered extra precautions will be taken to guard the privacy of those involved.

 

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