As a taxpayer, it is vital that you understand the meaning of terminologies found on your property tax bill. An ample knowledge about the important features of the document will help you better comprehend your tax duties. At the same time, you will be able to evaluate whether the amount of tax you need to pay as shown on the form is the right value or not.
Elements of a Property Tax Bill
Each item on your tax bill has a significant meaning. Some of the important components of the document that you must know are the following:
- full cash value or fair cash value - Is the value in cash if the property will be open for sale in the current market. The Assessor in your area establishes the equivalent worth of the property. The assessment is based on the value of the same type of property that has been sold out in your local market.
- taxable value or tax rate - Is the amount of tax that needs to be paid. The total tax due is calculated based on the property value, property tax rate, exemptions and rate of assessment.
- assessed value - Is the value of the property determined by the assessor for the area.