A tax assessment is a value attached to your real property and business personal property by the local government, specifically for the purpose of levying and collecting tax money that’s used to support your community. The assessed value of a property is determined by the government tax assessor and is based on the valuation of the property. The assessed value of the property is then multiplied by the property tax rate in your area to calculate your property tax bill.
It is important to note that the assessed value and appraised value of a property are not the same. The appraised value is the estimated value of a property based on its condition, location, and recent sales of similar properties in the area, while the assessed value is determined by the government tax assessor.
There are three methods used to assess property taxes: replacement method, sales comparison method, and income method. The replacement method is mostly used for business or commercial properties and looks at how much income can be expected if the property were to be rented out. The assessor also takes into consideration things like operating expenses and insurance, as well as maintenance.
In summary, a tax assessment is a value attached to a property by the local government for the purpose of levying and collecting tax money that’s used to support the community. The assessed value of a property is determined by the government tax assessor and is used to calculate the property tax bill.
