Definition
The relationship between the assessed valueAn estimate of value assigned to taxable property by the assessor for purposes of property taxation. State law requires all assessments periodically be within 10% of market value. Assessed values most closely reflect market value following a revaluation. In non-revaluation years, assessments typically reflect a fraction of market value due to the changing real estate market. and equalized valueThe full market value of all taxable property in a municipality, both real and personal. The equalized value is determined by the Department of Revenue each year. of all taxable property within a municipality. For example, if the assessed valueAn estimate of value assigned to taxable property by the assessor for purposes of property taxation. State law requires all assessments periodically be within 10% of market value. Assessed values most closely reflect market value following a revaluation. In non-revaluation years, assessments typically reflect a fraction of market value due to the changing real estate market. of all the taxable property in the City is $750,000,000 and the equalized valueThe full market value of all taxable property in a municipality, both real and personal. The equalized value is determined by the Department of Revenue each year. is $800,000,000 the assessment level (ratio) would be 93.75%.
- Assessment RatioThe relationship between the assessed value and equalized value of all taxable property within a municipality. For example, if the assessed value of all the taxable property in the City is $750,000,000 and the equalized value is $800,000,000 the assessment level (ratio) would be 93.75%.
• Assessment Ratio = Assessed Value ÷ Equalized Value
= Assessed ValueAn estimate of value assigned to taxable property by the assessor for purposes of property taxation. State law requires all assessments periodically be within 10% of market value. Assessed values most closely reflect market value following a revaluation. In non-revaluation years, assessments typically reflect a fraction of market value due to the changing real estate market. ÷ Equalized ValueThe full market value of all taxable property in a municipality, both real and personal. The equalized value is determined by the Department of Revenue each year.