Property Tax Glossary: Complete Guide to Terms and Definitions

A tax based on the assessed value of real or personal property. Property taxes are a type of ad valorem tax.

A formal request to review and possibly change a property’s assessed value or tax liability.

A professional estimate of a property's market value, often used to determine assessed value.

The dollar value assigned to a property by a public assessor for taxation purposes, typically a percentage of the property's market value.

The process of determining the value of a property for tax purposes.

A limit on how much a property's assessed value can increase from year to year, regardless of market value.

The ratio of assessed value to market value, used to calculate property tax liability.

A public official responsible for determining the value of properties for tax purposes.

A local or state body that hears appeals from property owners who dispute their assessments.

A value limit placed on how much a property's assessed value can increase annually, used in some jurisdictions.

Taxes that have not been paid by the due date and may incur penalties or interest.

A decrease in property value over time due to wear and tear, often used in appraisals to lower assessed value.

The right of a government to take private property for public use, with compensation to the owner.

A process that ensures uniform property assessment levels across different jurisdictions or property types.

A reduction in assessed value or tax liability granted based on specific criteria, such as age, disability, or veteran status.

The price a willing buyer would pay a willing seller for a property in an open market.

A reduction in taxable value granted to homeowners on their primary residence to reduce property tax liability.

A designated area where property owners pay additional taxes to fund local infrastructure improvements.

Additions or changes to land or buildings that may increase the property’s assessed value.

A legal process where a government takes ownership of a property due to unpaid taxes, without pursuing the owner personally.

The portion of a property’s value attributable to the land alone, separate from any buildings or improvements.

The price a property would sell for on the open market under normal conditions.

A tax rate expressed in mills per dollar of assessed value, where one mill equals one-tenth of a cent ($0.001).

A unique identifier assigned to a parcel of land by the local tax assessor’s office.

A tax on movable property such as vehicles, equipment, or business inventory, distinct from real estate tax.

A designation (e.g., residential, commercial, industrial, agricultural) used to determine how a property is taxed.

A program that prevents property taxes from increasing for eligible individuals, such as seniors or disabled persons.

Land and anything permanently attached to it, including buildings and structures.

A periodic revaluation of property by the taxing authority, which may increase or decrease the assessed value.

The tax rate that would generate the same total revenue as the previous year, excluding new property additions.

An additional charge on a property to fund specific public improvements, such as street paving or sewer systems.

A temporary reduction or elimination of property taxes, typically used to encourage development or revitalization.

A document sold to investors that entitles them to collect delinquent property taxes and potentially acquire the property.

An official responsible for billing and collecting property taxes on behalf of local governments.

The total amount of money a taxing authority requires to be raised from property taxes in a given year.

A legal claim by a government entity against a property for unpaid taxes, which must be satisfied before the property can be sold.

The percentage or millage applied to the assessed value to calculate the property tax owed.

The forced sale of property by a government entity to recover unpaid taxes.

The calendar or fiscal year for which property taxes are levied and collected.

The value of a property subject to property tax, often calculated as assessed value minus exemptions.

Laws requiring public notice and hearings when a taxing authority proposes to increase tax revenue beyond a set threshold.