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Assessment of Tax
the value set on taxable property.
Property Tax a "tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property."
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Local taxing units, which include the county, cities, school districts,
and special districts, decide how much money they will spend each year. This, in turn, determines the tax rate they need to set and the total amount of taxes that you and your neighbors will pay.
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Assessing Property
Cost (or replacement) An assessor will deduct the reasonable depreciation of the property but add the value method of the land. This approach is most appropriate
when the assessment is of a new and unique or specialized property.
Income method
To arrive at an assessment, the assessor considers the business taxes, the amount of income the property may generate, insurance costs, rates of vacancy, operating expenses, maintenance costs, and the current interest rate charged for borrowing money for making improvements or repairs on such a property.
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Assessing Property
Market or sales comparison method
This approach is similar to the method banks employ to value property when they consider issuing a mortgage.
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Chapter End
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