appraisal of real and personal property by taxing authorities for computation of ad valorem taxes. This is used to determine debt limits for municipal governments, as set by charter or by statutory limit, depending on the municipality or the state where it is located. Local property taxes are computed from an assessment ratio that sets taxes payable against a percentage of fair market value.
dollar value assigned to property by a municipality for purposes of assessing taxes, which are based on the number of mills per dollar of assessed valuation. If a house is assessed at $100,000 and the tax rate is 50 mills, the tax is $5,000.
dollar value assigned to property by a municipality for purposes of assessing taxes, which are based on the number of mills per dollar of assessed valuation. If a house is assessed at $100,000 and the tax rate is 50 mills, the tax is $5000. Assessed valuation is important not only to homeowners but also to investors in municipal bonds that are backed by property taxes.
