Print This Page. Mumpower Comptroller Emeritus Justin P. Assessment vs Taxation. Assessment: 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 is used to support your community.
Property tax: Property tax is a tax levied by a government on the buildings, land, and certain types of personal property bought or owned within their jurisdictions. Property tax liability is based on the tax assessment. Also, assessors generally do mass appraisals of buildings in their jurisdiction, so they may not know the specific details regarding your property that could affect its value. As a result, the assessed value is then indirectly reduced because the appraised value is the starting point for assessed value, before any assessment ratios and exemptions are applied.
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Topics: Property tax , Tax assessment. Property taxes change based on the policies set by your county, city, and state. Similarly, the amount you pay can change based on your property tax assessment. Some states update their assessments each year, while others might have a different schedule, such as every three years. Check with your taxing authority to find out how often assessments are made. When assessing your property, the assessor might look at what nearby homes have sold or been assessed for.
Some assessors are required to update home values by the first of the year, while others might have a two- or three-year cycle and notify homeowners at different times of the year. Sometimes referred to as the cost approach, this property tax assessment considers how much it would cost to rebuild the property based on the current market for materials and labor.
Depreciation can be included, and the cost of the land is considered as well. Also called the market approach, the sales comparison method looks at recent sales prices for comparable properties in your area.
The features and improvements of your home are compared to what was included in recently sold homes and your value is adjusted accordingly. This is a common method used to assess residential properties. Mostly used for business or commercial properties, this method looks at how much income can be expected if the property were to be rented out. Purchasing A Home. Selling Your Home. Your Privacy Rights.
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