Glossary
Plain-language definitions for every term you will encounter. Browse by letter or filter by category.
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A
Assessed Value
The dollar value assigned to a property by the local assessor for tax calculation purposes.
Property AssessmentAppraised Value
A professional estimate of a property's worth based on inspection and market analysis.
Property ValuationAssessment Ratio
The percentage of market value used to calculate assessed value in a jurisdiction.
Property AssessmentAd Valorem Tax
A tax based on the assessed value of property, meaning according to value in Latin.
Tax RatesAdjustment
A dollar or percentage change applied to a comparable sale to account for differences from the subject.
Property ValuationAssessment Roll
The official public list of all properties in a jurisdiction and their assessed values.
Property AssessmentAssessment Notice
A written notice from the assessor informing a property owner of their new assessed value.
Property AssessmentAppeal
A formal request to a review board or court to lower an assessed property value.
Appeal ProcessAppraisal Review Board
A panel of citizens that hears property owner protests and rules on assessment disputes.
Appeal ProcessAppraisal Report
A formal document prepared by a licensed appraiser detailing a property's estimated value.
Property ValuationAgricultural Exemption
A reduced assessment for land actively used for farming, ranching, or timber production.
Tax ExemptionsAbatement
A temporary reduction or elimination of property taxes granted by a local government.
Tax ExemptionsAssessment Cycle
The regular schedule on which a jurisdiction reassesses all properties, often every one to five years.
Property AssessmentAssessment Cap
A statutory limit on the annual percentage increase of a property's assessed value.
Property AssessmentAssessed to Market Ratio
The proportion of a property's market value that is used as its assessed value.
Property AssessmentArm's Length Transaction
A sale between unrelated parties acting in their own self-interest with no outside pressure.
Property ValuationAssessment Date
The specific date on which a property's value is determined for tax purposes, often January 1.
Property AssessmentAssessed Value Freeze
A program that locks the assessed value at a certain level for qualifying senior homeowners.
Tax ExemptionsAssemblage
The combining of two or more adjacent parcels into a single larger tract to increase total value.
Property ValuationAppraiser Certification
A state-issued license verifying that an appraiser meets education and experience requirements.
Property ValuationB
Board of Equalization
A government body that reviews assessments to ensure properties are valued uniformly and fairly.
Appeal ProcessBurden of Proof
The obligation to provide evidence that the assessed value is incorrect, usually on the property owner.
Appeal ProcessBinding Arbitration
A dispute resolution process where the arbitrator's decision on the assessed value is final.
Appeal ProcessBuilding Permit
A government approval to construct or modify a structure, which may trigger reassessment.
Property AssessmentBase Year Value
The original assessed value established when a property was last purchased or newly constructed.
Property AssessmentBlind or Disabled Exemption
A property tax reduction for homeowners who are legally blind or permanently disabled.
Tax ExemptionsBond Measure
A voter-approved proposal authorizing the government to issue bonds repaid through property taxes.
Tax RatesBenefit Assessment
A charge levied on properties that directly benefit from a specific public improvement or service.
Tax RatesBand of Investment
A method for deriving a cap rate by weighting mortgage and equity return rates.
Property ValuationC
Comparable Sales
Recent sales of similar properties used to estimate the market value of a subject property.
Property ValuationCost Approach
A valuation method estimating value by adding land value to the depreciated cost of improvements.
Property ValuationComparative Market Analysis
A report by a real estate agent comparing similar properties to estimate a home's market value.
Property ValuationCoefficient of Dispersion
A statistical measure of how uniformly properties are assessed compared to their sale prices.
Property AssessmentComputer Assisted Mass Appraisal
Software systems that use algorithms and property data to generate assessments at scale.
Property AssessmentCapitalization Rate
The ratio of net operating income to property value, used in the income approach to valuation.
Property ValuationClosing Costs
Fees and expenses paid at the completion of a real estate transaction, often including prorated taxes.
Tax RatesContingency Fee Agreement
A payment arrangement where the consultant's fee is a percentage of the tax savings achieved.
Appeal ProcessClawback Provision
A clause requiring repayment of tax benefits if the property owner fails to meet agreed conditions.
Tax ExemptionsConditional Use Permit
A permit allowing a specific land use not normally permitted under the current zoning.
Property AssessmentCondition Adjustment
A value change applied to a comparable sale to reflect differences in property condition.
Property ValuationChange of Ownership
A transfer of property that may trigger a reassessment to current market value.
Property AssessmentCalamity Reassessment
A temporary reduction in assessed value after a property is damaged by a disaster.
Property AssessmentConsumer Price Index
An economic indicator sometimes used to calculate the annual inflation adjustment to assessed values.
Property AssessmentConservation Easement
A legal agreement that limits development on a property, often reducing its assessed value.
Tax ExemptionsCircuit Breaker
A tax relief program that limits property taxes to a percentage of the homeowner's income.
Tax ExemptionsCommunity Facilities District
A special district formed to finance public improvements through additional property taxes.
Tax RatesCommercial Property Tax
Property taxes levied on real estate used for business purposes such as offices and retail.
Commercial PropertyContract Rent
The actual rental amount specified in a lease agreement between landlord and tenant.
Commercial PropertyCondemnation
The legal process by which the government exercises eminent domain to acquire private property.
Property ValuationCurable Depreciation
Property deficiencies that can be economically repaired, where the fix costs less than the value gain.
Property ValuationCertified Tax Rate
The tax rate officially adopted by a taxing authority for the current fiscal year.
Tax RatesD
Disability Exemption
A property tax reduction for homeowners who have a qualifying physical or mental disability.
Tax ExemptionsDeferral
A program allowing eligible homeowners to postpone property tax payments until the home is sold.
Tax ExemptionsDelinquent Taxes
Property taxes that remain unpaid after the due date, subject to penalties and interest.
Tax RatesDocumentary Stamp Tax
A state tax levied on real property documents such as deeds at the time of recording.
Tax RatesDeadline to File
The last date by which a property owner must submit a protest or appeal of their assessment.
Appeal ProcessDepreciation Schedule
A table showing the annual decline in value of tangible personal property for tax purposes.
Commercial PropertyDecline in Value
A temporary assessment reduction when a property's market value falls below its assessed value.
Property AssessmentDirect Assessment
A charge on a property tax bill for specific services like trash, lighting, or flood control.
Tax RatesDistressed Sale
A sale under financial pressure such as foreclosure that typically results in a below-market price.
Property ValuationDark Store Theory
A valuation approach comparing an occupied retail property to vacant or closed stores to lower taxes.
Commercial PropertyDebt Service Coverage Ratio
The ratio of net operating income to annual debt payments, indicating ability to service a loan.
Commercial PropertyDirect Capitalization
Converting a single year's net income to property value by dividing by the capitalization rate.
Property ValuationDiscounted Cash Flow
An analysis projecting future income and expenses to estimate present property value.
Property ValuationE
Evidence Packet
A collection of documents and data submitted to support a property tax appeal.
Appeal ProcessEqualization
The process of adjusting assessments across jurisdictions to ensure uniform and fair taxation.
Property AssessmentEqualization Rate
The ratio of total assessed value to total market value in a jurisdiction, used to measure uniformity.
Property AssessmentEffective Gross Income
Potential gross income minus vacancy and collection losses for a rental property.
Property ValuationEconomic Obsolescence
Loss in value caused by external factors such as neighborhood decline or environmental hazards.
Property ValuationExternal Obsolescence
A decrease in property value caused by factors outside the property, such as nearby noise or blight.
Property ValuationEffective Age
The apparent age of a building based on its condition rather than its actual construction date.
Property ValuationEscrow
An account held by a mortgage lender to collect and pay property taxes on behalf of the borrower.
Tax RatesEnterprise Zone
A designated area offering property tax incentives to encourage business investment and job creation.
Tax ExemptionsExclusion from Reassessment
A provision preventing reassessment for certain transfers, such as between parent and child.
Tax ExemptionsEscaped Assessment
A correction to the tax roll for property or value that was previously missed or omitted.
Property AssessmentExemption Application
The form a property owner files to request a tax exemption from the assessor's office.
Tax ExemptionsExemption Deadline
The last date by which a property owner must file for a tax exemption to receive it for that year.
Tax ExemptionsExpense Ratio
Operating expenses expressed as a percentage of effective gross income for a commercial property.
Commercial PropertyEffective Tax Rate
The actual property tax paid as a percentage of the property's full market value.
Tax RatesEasement
A right allowing someone other than the owner to use a portion of the property for a specific purpose.
Property ValuationEncumbrance
Any claim or restriction on a property that may affect its value, such as liens or easements.
Property ValuationEnvironmental Contamination
Pollution or hazardous materials on a property that can significantly reduce its assessed value.
Property ValuationEminent Domain
The government's power to take private property for public use with fair compensation.
Property ValuationExcess Land
Land beyond what is needed for the property's highest and best use, which may be valued separately.
Property ValuationF
Fair Market Value
The most probable price a property would bring in a competitive and open market.
Property ValuationFunctional Obsolescence
Loss in value due to outdated design, layout, or features that reduce a property's usefulness.
Property ValuationFormal Hearing
A structured proceeding before an appeals board where evidence is presented under oath.
Appeal ProcessFactored Base Year Value
The base year value adjusted annually by the allowed inflation factor, up to a maximum of 2%.
Property AssessmentForeclosure
A legal process where a lender or government seizes property due to unpaid debts or taxes.
Tax RatesFiscal Year
The 12-month financial period used by a taxing authority, which may differ from the calendar year.
Tax RatesFee Simple
The most complete form of property ownership, with unrestricted rights to use and transfer.
Property ValuationFloor Area Ratio
The ratio of a building's total floor area to the size of the lot it occupies.
Commercial PropertyFrontage
The length of a property's boundary along a street or road.
Property ValuationFlood Zone
A FEMA-designated area indicating the level of flood risk, which can impact property value.
Property ValuationG
Gross Income Multiplier
A ratio of property price to gross annual income used to quickly estimate property value.
Property ValuationGovernment Exemption
A tax exemption for property owned by federal, state, or local government entities.
Tax ExemptionsGross Living Area
The total finished above-grade living space in a home, measured in square feet.
Property ValuationGreenbelt
A program valuing farmland based on its agricultural use rather than its development potential.
Tax ExemptionsGoing Concern Value
The value of a property as an operating business, including intangible assets and goodwill.
Commercial PropertyGround Lease
A lease of land only, where the tenant constructs and owns improvements on the leased parcel.
Commercial PropertyH
Highest and Best Use
The most profitable legal use of a property that determines its maximum market value.
Property ValuationHomestead Exemption
A tax reduction for owner-occupied primary residences that lowers the taxable assessed value.
Tax ExemptionsHistoric Preservation Exemption
A tax reduction for owners who restore and maintain designated historic properties.
Tax ExemptionsI
Income Approach
A valuation method that estimates property value based on the income it generates.
Property ValuationImprovement Value
The assessed value of buildings and structures on a property, separate from the land value.
Property ValuationImpound Account
A lender-managed account that collects monthly payments for property taxes and insurance.
Tax RatesInterest on Delinquent Taxes
An additional charge accrued on unpaid property taxes calculated as a percentage over time.
Tax RatesInformal Hearing
An initial meeting with the assessor's office to discuss and resolve a valuation disagreement.
Appeal ProcessInstallment Payment
A scheduled partial payment of property taxes, typically due semiannually or quarterly.
Tax RatesImprovement Exemption
A temporary tax exemption on the added value from renovations or improvements to a property.
Tax ExemptionsIndustrial Property Tax
Property taxes on land and buildings used for manufacturing, warehousing, or production.
Commercial PropertyIntangible Value
Value attributed to non-physical assets like goodwill, brand, or business relationships.
Commercial PropertyInverse Condemnation
A claim by a property owner that government action has effectively taken their property without payment.
Property ValuationIncurable Depreciation
Property deficiencies where the cost to fix exceeds the resulting increase in value.
Property ValuationIAAO
The International Association of Assessing Officers, a professional body for property tax assessors.
Property AssessmentJ
L
Land Value
The assessed or appraised worth of the land alone, excluding any buildings or improvements.
Property ValuationLegal Description
A precise written description of a property's boundaries used in legal documents and tax records.
Property AssessmentLand Use
The current or permitted activity on a property, such as residential, commercial, or industrial.
Property AssessmentLocation Adjustment
A value change applied to a comparable sale to account for differences in property location.
Property ValuationLow Income Exemption
A property tax reduction for homeowners whose income falls below a specified threshold.
Tax ExemptionsLien Date
The date on which a tax lien attaches to a property, establishing the tax obligation.
Tax RatesLeased Fee Interest
The landlord's ownership interest in a leased property, valued based on the lease income stream.
Commercial PropertyLeasehold Interest
The tenant's interest in a leased property, which has value when the lease rate is below market.
Commercial PropertyLot Size
The total area of a parcel of land, typically measured in square feet or acres.
Property ValuationM
Market Value
The price a property would sell for in an open market between a willing buyer and seller.
Property ValuationMillage Rate
The tax rate expressed as dollars per thousand of assessed value used to compute property taxes.
Tax RatesMill
One-tenth of one cent, or $1 of tax for every $1,000 of assessed property value.
Tax RatesMass Appraisal
The process of valuing a large number of properties at once using statistical models and data.
Property AssessmentMarket Correction
A decline in property values due to economic factors, which may support a lower assessment.
Property ValuationMello-Roos
A California special tax district that funds infrastructure and services for new developments.
Tax RatesMixed-Use Property
Real estate combining residential and commercial uses in the same building or development.
Commercial PropertyMarket Rent
The rental rate a property would command in the open market under current conditions.
Commercial PropertyMarket Approach
Another name for the sales comparison approach to property valuation.
Property ValuationN
Net Operating Income
Gross rental income minus operating expenses, used to determine commercial property value.
Property ValuationNonprofit Exemption
A tax exemption for property owned by qualifying charitable, religious, or educational organizations.
Tax ExemptionsNeighborhood Factor
An adjustment applied to property values based on the desirability and characteristics of the area.
Property AssessmentNew Construction
Recently built improvements added to the tax roll at their current market value.
Property AssessmentNon-Arm's Length Sale
A transaction between related parties or under unusual conditions that may not reflect market value.
Property ValuationNominal Tax Rate
The stated tax rate applied to assessed value, before adjusting for assessment ratios.
Tax RatesO
P
Property Classification
The category assigned to property such as residential, commercial, or agricultural for tax purposes.
Property AssessmentProtest
A formal objection filed by a property owner challenging their assessed value.
Appeal ProcessProposition 13
A California law that caps property tax at 1% of purchase price with a 2% annual increase limit.
Tax RatesPortability
The ability to transfer accumulated tax savings from a previous homestead to a new primary residence.
Tax ExemptionsPhysical Depreciation
Loss in property value caused by wear, tear, and aging of the physical structure.
Property ValuationParcel
A distinct piece of real property identified by a unique number in the assessor's records.
Property AssessmentParcel Number
A unique identification number assigned to a property by the local assessor's office.
Property AssessmentPlat Map
A survey map showing the boundaries, lots, and dimensions of properties in a subdivision.
Property AssessmentPenalty
A charge added to unpaid property taxes for late payment, usually a percentage of the tax owed.
Tax RatesPollution Control Exemption
A tax exemption for equipment or facilities installed primarily to reduce pollution.
Tax ExemptionsPayment in Lieu of Taxes
A payment made by a tax-exempt entity to a local government in place of property taxes.
Tax RatesPresumption of Correctness
The legal assumption that the assessor's value is correct until the owner proves otherwise.
Appeal ProcessProperty Tax Consultant
A professional hired to analyze assessments and represent property owners in tax appeals.
Appeal ProcessPersonal Property Tax
A tax on movable assets such as business equipment, vehicles, and inventory.
Tax RatesPrice Per Square Foot
A common metric dividing a property's sale price or value by its total square footage.
Property ValuationParent-Child Transfer
A property transfer between parent and child that may qualify for reassessment exclusion.
Tax ExemptionsProposition 8 Reduction
A California provision allowing temporary assessment reductions when market value drops below base year.
Property AssessmentProperty Tax Refund
A rebate issued to homeowners who overpaid taxes or qualified for retroactive exemptions.
Tax RatesProperty Tax Deduction
A federal income tax deduction for state and local property taxes paid, subject to SALT limits.
Tax RatesPublic Hearing
A government meeting where taxpayers can comment on proposed tax rates or budget changes.
Tax RatesPartial Taking
The government acquisition of only a portion of a property through eminent domain.
Property ValuationPlottage
The increase in value that results from combining adjacent parcels into a single larger parcel.
Property ValuationR
Right of Redemption
A former owner's legal right to reclaim their property by paying overdue taxes within a set period.
Tax RatesRevaluation
A comprehensive reassessment of all properties in a jurisdiction to reflect current market values.
Property AssessmentReassessment
An update to a property's assessed value, which may occur annually or on a set cycle.
Property AssessmentReplacement Cost New
The current cost to construct a replica of the subject building using modern materials and standards.
Property ValuationReproduction Cost
The cost to build an exact duplicate of the subject building using the same materials and design.
Property ValuationRemaining Useful Life
The estimated number of years a building will continue to contribute value to the property.
Property ValuationRedemption Period
The time allowed for a property owner to pay delinquent taxes and reclaim their property.
Tax RatesReligious Exemption
A tax exemption for property used primarily for religious worship and related activities.
Tax ExemptionsRendition
A form filed by a business listing its taxable personal property and declared values.
Commercial PropertyRoll Correction
An amendment to the assessment roll to fix errors in property value, ownership, or description.
Property AssessmentRollback Taxes
Additional taxes owed when land receiving an agricultural exemption is converted to a different use.
Tax RatesRegression Analysis
A statistical method used to model property values based on characteristics like size and location.
Property ValuationRevenue Neutral Rate
The tax rate that would generate the same total revenue as the prior year after reassessment.
Tax RatesS
Sales Comparison Approach
A valuation method that estimates value by comparing the subject to recent comparable sales.
Property ValuationSenior Exemption
A property tax reduction available to homeowners who meet a minimum age requirement.
Tax ExemptionsSpecial Assessment District
An area where property owners pay extra taxes to fund specific local improvements.
Tax RatesSpecial Assessment
A charge levied on properties that benefit from a specific public improvement like roads or sewers.
Tax RatesSave Our Homes
A Florida amendment capping annual assessed value increases at 3% for homesteaded properties.
Tax RatesSite Value
The value of a parcel of land as if it were vacant and available for its highest and best use.
Property ValuationSolar Exemption
A property tax exemption for the added value of solar panels or renewable energy systems.
Tax ExemptionsStipulation
An agreement between the property owner and assessor to settle on a specific assessed value.
Appeal ProcessSplit Assessment
Separate valuation of land and improvements on the same parcel for tax purposes.
Property AssessmentSize Adjustment
A value change applied to a comparable sale to account for differences in building or lot size.
Property ValuationSupplemental Tax Bill
An additional tax bill issued when a property is reassessed mid-year due to sale or new construction.
Tax RatesSpecial Use Valuation
A method assessing agricultural or open-space land based on its current use instead of market value.
Tax ExemptionsSurviving Spouse Exemption
A property tax benefit available to the surviving spouse of a deceased veteran or homeowner.
Tax ExemptionsSTAR Program
New York's School Tax Relief program providing exemptions for eligible homeowners.
Tax ExemptionsSales Ratio Study
An analysis comparing assessed values to actual sale prices to evaluate assessment accuracy.
Property AssessmentSALT Cap
The $10,000 federal limit on deducting state and local taxes, including property taxes.
Tax RatesSplit Roll
A system that applies different assessment rules to residential and commercial properties.
Tax RatesSetback
The required minimum distance between a building and the property boundary line set by zoning.
Property AssessmentStigma Damage
A reduction in property value caused by negative perceptions, such as a history of contamination.
Property ValuationSeverance Damages
Compensation for the loss in value to the remaining property after a partial government taking.
Property ValuationSurplus Land
Land that is not needed for the current improvements but cannot be separately developed or sold.
Property ValuationSubdivision
The division of a single parcel of land into smaller lots, typically for residential development.
Property AssessmentT
Tax Rate
The percentage applied to assessed value to determine the annual property tax owed.
Tax RatesTax Levy
The total amount of property tax revenue a taxing authority authorizes to collect.
Tax RatesTax Roll
The official record listing all taxable properties, their values, and the taxes owed.
Tax RatesTax Tribunal
A specialized court that hears property tax disputes when administrative appeals are exhausted.
Appeal ProcessTax Freeze
A program that locks the property tax amount for eligible homeowners such as seniors.
Tax ExemptionsTax Lien
A legal claim placed on a property by the government for unpaid property taxes.
Tax RatesTax Sale
A public auction where properties or tax liens are sold to recover unpaid property taxes.
Tax RatesTax Deed
A legal document transferring property ownership to a buyer at a tax sale.
Tax RatesTaxing Authority
A government entity authorized to impose and collect property taxes, such as a county or school district.
Tax RatesTax District
A geographic area subject to a specific set of property tax rates from various taxing authorities.
Tax RatesTax Cap
A legal limit on the amount property taxes or assessed values can increase in a given year.
Tax RatesTax Assessor
The local government official responsible for determining property values for tax purposes.
Property AssessmentTax Collector
The government official responsible for collecting property tax payments from property owners.
Tax RatesTax Bill
The official statement sent to a property owner showing the amount of property taxes owed.
Tax RatesTax Proration
The division of property taxes between buyer and seller based on their ownership period at closing.
Tax RatesTransfer Tax
A tax imposed on the transfer of real property ownership from one party to another.
Tax RatesTax Certificate
A document purchased at a tax lien sale granting the holder a lien on the delinquent property.
Tax RatesTax Exemption
A provision that reduces or eliminates the property tax obligation for qualifying property owners.
Tax ExemptionsTax Increment Financing
A financing tool that uses future property tax revenue increases to fund current improvements.
Tax RatesTax Attorney
A lawyer specializing in property tax law who represents owners in appeals and litigation.
Appeal ProcessTax Abatement Agreement
A contract between a government and property owner granting reduced taxes for a set period.
Tax ExemptionsTangible Personal Property
Physical business assets like machinery, furniture, and tools subject to property taxation.
Tax RatesTimber Exemption
A reduced assessment for land used primarily for growing and harvesting timber.
Tax ExemptionsTax Credit
A dollar-for-dollar reduction in the amount of property tax owed.
Tax RatesTax Payment Plan
An arrangement allowing a property owner to pay delinquent taxes in installments.
Tax RatesTax Abatement Zone
A geographic area designated by a local government where qualifying properties receive tax reductions.
Tax ExemptionsTriple Net Lease
A lease where the tenant pays all operating expenses, taxes, and insurance in addition to rent.
Commercial PropertyTax Shelter
A legal strategy using property ownership and depreciation to reduce overall tax liability.
Tax RatesTaxable Value
The assessed value minus any exemptions, which is the amount subject to the property tax rate.
Property AssessmentTruth in Taxation
A law requiring public notice and hearings before a taxing authority raises the effective tax rate.
Tax RatesTaxpayer Advocacy
Services offered by government offices to help property owners understand and exercise their rights.
Appeal ProcessTopography
The physical features and terrain of a property that can affect its usability and value.
Property ValuationU
Uniformity
The legal requirement that similar properties be assessed at the same proportion of market value.
Property AssessmentUnequal Appraisal
A protest ground claiming the property is assessed higher than comparable properties in the area.
Appeal ProcessUSPAP
The Uniform Standards of Professional Appraisal Practice governing ethical and competent appraisal work.
Property ValuationV
Veteran Exemption
A property tax reduction or elimination for qualified military veterans and their surviving spouses.
Tax ExemptionsVacancy Rate
The percentage of rental units or space that is unoccupied at a given time.
Commercial PropertyVariance
A government-granted exception allowing a property to deviate from current zoning rules.
Property AssessmentVoter Approved Debt
Government borrowing authorized by voters that may be repaid through additional property tax levies.
Tax Rates