What Is Total Assessment for Property Taxes?

Property taxes fund local government services across the United States. The “total assessment” is the value assigned to real estate by a local assessing authority. This valuation forms the basis for calculating a property owner’s annual tax liability. Understanding total assessment is key to comprehending how property taxes are determined and how the tax burden is distributed equitably among property owners to support public resources.

How Property Value Is Assessed

Local government assessors estimate the market value of real property within their jurisdiction. Market value is the price a willing buyer and seller would agree upon under normal circumstances. This estimated market value is then converted into an assessment, which forms a component of the real property tax bill.

One common method for valuing residential properties is the market approach, also known as sales comparison. Assessors compare a property to similar properties that have recently sold, making adjustments for differences in features, condition, and location. Another method is the cost approach, which determines value based on the cost to build a new structure, minus depreciation, plus the value of the land. This method is often applied to new construction, unique properties, or those with limited comparable sales.

For income-generating properties, such as apartment buildings or commercial spaces, assessors may use the income approach. This method estimates a property’s value based on its potential income, considering factors like rental income, operating expenses, and a capitalization rate. Many factors influence a property’s assessment, including location, lot size, age, condition, and improvements. The assessed value might also be a percentage of the market value, known as an assessment ratio.

Understanding Your Assessment Notice

After determining a property’s value, the local assessing authority sends an assessment notice to the owner. This notice is distinct from a tax bill, which is calculated separately using the assessed value and local tax rate. It informs the property owner of the value assigned for the upcoming tax year.

The assessment notice typically includes:
The total assessed value of the property, often itemized for land and improvements.
The effective date of the assessment.
Property identification details, such as a parcel number and address.
Characteristics of the property as recorded by the assessor (e.g., square footage, number of rooms, construction type), which is important for verifying accuracy.
Information about the deadline and instructions for appealing the assessment if the owner believes it is inaccurate.

The Assessment Review Process

If a property owner believes their total assessment is inaccurate, they have the right to challenge it. The initial step involves reviewing the property record card for factual errors, such as incorrect square footage or number of bathrooms. Gathering comparable sales data for similar properties in the neighborhood can also provide strong evidence.

Many jurisdictions offer an informal review process, allowing property owners to discuss concerns directly with the assessor’s office. Presenting evidence, such as comparable sales or documentation of property issues, during this meeting can lead to an adjustment without a formal appeal.

If an informal agreement is not reached, a formal appeal can be filed. This involves submitting forms and documentation to a local review board, such as a Board of Review or Board of Equalization, by a set deadline. Deadlines for filing appeals vary significantly. If dissatisfied with the local board’s decision, further appeals may be possible to a state-level agency or a court, though this involves additional requirements and longer timelines. The review process requires diligent documentation and strict adherence to deadlines.