Tax Assessment
Tax assessment is the process by which local government assessors determine the value of real property for taxation purposes. The assessed value, which may differ from market value, is used to calculate annual property tax bills by applying the local tax rate to the assessed value.
Example
“The homeowner appealed the tax assessment, arguing that her property was valued $50,000 too high.”
Memory Tip
ASSESS-ment - the assessor must ASSESS (evaluate) your property to determine taxes.
Why It Matters
Understanding your tax assessment helps you budget for property taxes and identify opportunities to appeal if you believe your property is overvalued compared to similar properties.
Common Misconception
Assessed value is not the same as market value; assessments are often based on mass appraisal techniques and may not reflect current market conditions or individual property characteristics.
In Practice
Your home purchases for $400,000 but receives a tax assessment of $350,000, meaning your property taxes are calculated on the lower assessed value, though you could appeal if you felt even that amount was too high based on comparable sales.
Etymology
From Latin 'assessus,' meaning 'to sit beside' - assessors literally sat beside judges to help determine property values.
Common Misspellings
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