Property assessment for new facility construction in Alberta is based on actual construction costs which are to be reported to the applicable assessing authority subsequent to facility commissioning.

1. Alberta Construction Cost Reporting
The ‘Black & White’ List of Non-Assessable Costs
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Property assessment for new facility construction in Alberta is
based on actual construction costs which are to be reported
to the applicable assessing authority subsequent to facility
commissioning.
In accordance with the Construction Cost Reporting Guide
(CCRG) issued by Alberta Municipal Affairs, there are a
number of costs that are necessary for facility construction
which may be classified as non-assessable and therefore not
reported for property assessment/tax purposes. Proper
tracking, identification and quantification of construction
costs will assist in managing the future property tax liability of
capital projects.
1. Pre-construction / Post-construction Activity
a. Feasibility Study
b. Cancellation charges
c. Commissioning Costs, Pre-production runs & Start-up
d. Consumable Materials
2. Royalties, Operational Licenses, Patent fees, etc
3. Mobile Equipment
4. Spare Equipment (parts)
5. GST
6. Import Duty and Broker Fees
7. Any Bonuses Paid to Contractors for Early Completion
or Penalties
8. Computer Costs (non-process related)
9. Travel Costs
10. Transportation / Freight Costs (Edmonton Area to site)
11. Interest Costs During Construction
12. Owners Costs (non construction related)
13. Premium Portion of Overtime Paid
14. Property Taxes
‘Grey’ non-assessable costs include:
1. Design changes, alterations, and modifications
2. Interference costs
3. Abnormal costs of construction
‘Black & White’ of non-assessable costs include: