What principle is Alberta's real property taxation based on?

The principle on which Alberta's real property taxation is based is the ad valorem principle. This principle means that the amount of tax levied on a property is determined based on the property's value. In Alberta, this indicates that property taxes are assessed according to the market value of the real estate, ensuring that property owners pay taxes proportionate to the real economic value their properties represent.

This system allows for a fair distribution of the tax burden, as properties with higher market values will pay more tax compared to those with lower values. Taxing authorities assess properties regularly to ensure that values reflect current market conditions, which is essential for maintaining an equitable tax system.

The other options, while related to taxation principles, do not accurately capture the approach used in Alberta. The proportionality principle focuses on ensuring equity among taxpayers, the market value principle pertains to the valuation basis but lacks the specificity of the ad valorem approach, and the flat rate principle implies a fixed tax amount, which does not apply to property taxation in Alberta, where variations in property values lead to different tax amounts.