Abatement refers to a reduction in the amount, intensity, or duration of something. In the context of real estate, it typically applies to decreases in taxes, rents, or environmental harm.
Ad Valorem is a Latin term meaning 'according to value.' It describes a tax whose amount is based on the value of a transaction or a property.
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.
An assessor is a government official responsible for determining the value of a property for the purpose of ad valorem taxation. They evaluate real estate to assign tax values based upon current market conditions.
The Board of Equalization (BOE) is a government entity responsible for ensuring uniform property tax assessments within its jurisdiction. This entity operates at both local and state levels to maintain equity and fairness in property taxation.
A board of equalization is a governmental body tasked with ensuring property assessments for tax purposes are fair and equitable. These boards are pivotal in balancing the property tax system to avoid over- or under-taxation.
A Budget Mortgage is a mortgage structure which includes monthly payments for taxes and insurance, in addition to the standard interest and principal. This type of mortgage ensures that homeowners set aside the necessary funds for property tax and insurance premiums.
Computer-Assisted Mass Appraisal (CAMA) refers to the process of using computer software to value large sets of properties within a given area, often for the purpose of property tax assessments.
Dedication refers to the act of setting aside and transferring ownership of private land by its owner to a public agency for public use, which must be formally accepted by the governmental unit.
The effective tax rate is a measure used to compare the tax payments with the market value of the property or annual income, facilitating comparisons across different jurisdictions with varying assessment ratios.
Equal and Uniform Taxation is a principle asserting that all individuals and property within the same class must be treated equally, with the same rate and value applied to property being taxed.
An exemption in real estate refers to certain portions of a property's value or income that are legally excluded from taxation, lowering the overall tax burden.
Fair market value (FMV) is a critical concept in real estate, representing the estimated price at which a property would sell in the open market under normal circumstances. It is commonly used in property tax assessments, sales valuations, and condemnation proceedings.
The International Association of Assessing Officers (IAAO) is a professional organization dedicated to promoting excellence in property appraisal, assessment administration, and property tax policy.
The Lincoln Institute of Land Policy is a nonprofit educational organization committed to the research and discussion of land policy and property tax issues on a global scale.
Mass appraising involves assessing groups of properties to estimate their values using sophisticated statistical methods, often employed by tax authorities for property tax assessments.
In real estate, a mill represents one-tenth of a cent. It is often used to express tax rates on a per-dollar basis of assessed valuation.
A government levy based on the market value of privately owned property, commonly referred to as ad valorem tax or real estate tax.
Real estate tax is a levy on property that the owner is required to pay. This tax is usually a major source of revenue for local governments and is often assessed as an ad valorem tax, based on the property's value.
A special assessment is a unique tax levied on property owners to fund public improvements that directly benefit their property, such as new curbs, gutters, sidewalks, or street lighting.
A tax and insurance escrow account, often required by mortgage lenders, is used to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. This account is funded through monthly contributions by the mortgagor.
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 base refers to the collective value of property, income, or other taxable assets and activities that are subject to taxation. It is crucial in determining tax revenues as it forms the basis upon which tax rates are applied.
A tax deed is a legal document transferring ownership of a property to a purchaser following a public auction for unpaid property taxes.
Tax equalization ensures that taxpayers within the same jurisdiction pay similar amounts for equivalent properties, contributing to a fairer property tax system.
A tax liability refers to the amount of tax debt owed to the Internal Revenue Service (IRS) or a state's tax authority. These liabilities can result from income earned, properties owned, or other taxable activities.
A tax lien is a legal claim by a government entity against a property when the owner fails to pay taxes owed, effectively securing the amount of delinquent tax against the property.
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.
Unit value refers to the valuation of an entire business entity, such as a public utility or railroad. This valuation is crucial for purposes such as assessing property taxes.
