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Ch. 3
Vocab: Property Taxation & Assessment
Term | Definition |
---|---|
Ad Valorem | Latin meaning "according to value." The basis for taxes on real property. |
Assessed Value | The value to which a local tax rate is applied to calculate the amount of real property tax. |
Assessment | A levy against property. |
Market Value | The value in terms of money agreed upon by a willing buyer and seller, neither being under undue pressure and each being knowledgeable of market conditions at the time. |
Mills | Tax rate based on theory of 1/10th of 1cent (or .1 of 1 c., .001 of tax value). *Mills is not used NC, but may show up on national portion of the state examination. |
Mill Rate | Mill rate of 15 would represent 15 x .001 (or .015 x tax value).Rate of 52 mills would be $0.052 tax for each dollar of assessed valuation of a property. *Mills is not used NC , but nationally, some states use this to compute real estate taxes. |
Appraisal | An estimate of property value based on factual data. |
NC Machinery (Revenue) Act | State law sets forth process counties carry out to determine property's AV for ad valorem r.e. taxes. In NC, AV=100%MV. Octennial (8yr appraisal); rates can change annually; horizontal adjustments (across board to all properties every 4 yrs). |