An ad valorem tax is a tax based on the assessed value of an item such as real estate or personal property. This term is commonly used in the contexts of property tax, real estate transactions, and import duties.
Assessed value or valuation is the value against which a property tax is imposed. The assessed value is often lower than the market value because of state law, conservative tax district appraisals, and infrequent reassessment.
The Assessment Ratio is the ratio of a property's assessed value to its market value. It is used by tax authorities to determine the amount of property tax due by property owners.
A homestead exemption is a legal provision that helps reduce the amount of property taxes on domiciles owned by qualifying individuals. These exemptions can vary by jurisdiction and may provide additional benefits for certain groups such as seniors or disabled individuals.
Tax assessment is the valuation of real estate property by a government entity to determine the property's tax liability. The assessed value is used to calculate the property taxes owed by the property owner.
The tax rate is the ratio of a tax assessment to the amount being taxed and is a crucial factor in determining the tax liability of property owners. This rate can vary widely based on location and the type of tax being applied.
A tax roll is the comprehensive list of real estate properties within a specific jurisdiction that are subject to property taxes. It includes details about the properties' assessed values, which are used to determine the property tax liabilities.
Taxable Value, also referred to as Assessed Value, is the dollar amount assigned to a property for the purposes of calculating property taxes. It's an estimation of a property's market value determined by the local tax assessor.
