Machinery and Equipment

"Machinery & Equipment" does not include:
  • anything that falls within the definition of linear property as set out in section 284(1)(k), or
  • any component of a manufacturing or processing facility that is used for the co-generation of power.

(1)  Machinery and Equipment has the meaning given to it in the regulations;

AR 365/94 Standards of Assessment (Consolidated up to 290/97)

machinery and equipment means materials, devices, fittings, installations, appliances, apparatus and tanks other than tanks used exclusively for storage, including supporting foundations and footings and any other thing prescribed by the Minister that forms an integral part of an operational unit intended for or used in:
  • manufacturing,
  • processing,
  • the production or transmission by pipeline of natural resources or products or byproducts of that production, but not including pipeline that fits within the definition of linear property in section 284(k)(iii) of the Act,
  • the excavation or transportation of coal or oil sands, as defined in the Oil Sands Conservation Act,
  • a telecommunications system, or
  • an electric power system,
whether or not the materials, devices, fittings, installations, appliances, apparatus, tanks, foundations, footings or other things are affixed to land in such a manner that they would be transferred without special mention by a transfer or sale of the land.

In preparing an assessment for machinery and equipment, the assessor must follow the procedures set out in the Alberta Machinery and Equipment Assessment Ministers Guidelines established and maintained by the Department of Municipal Affairs, as amended from time to time.

For Machinery & Equipment that are excluded from the Minister's guideline the Assessor may request the Company to report cost to him/her to assess based on replacement cost.

"Replacement Cost" means the cost of replacing an improvement with one having equivalent utility to the original improvement when it was new.

Machinery & Equipment has a statuary rate of 77% of the replacement cost to arrive at an assessment.

Machinery & Equipment also enjoy a school tax rate of 0, therefore they only pay taxes for municipal purposes.