Glossary of Property Tax Terms

Abatement	An official reduction or elimination of one's assessed valuation after completion of the original assessment. Also, defined as an official reduction or elimination of one's tax liability after completion of the tax roll.
Ad Valorem	A tax levied in proportion to the value of the thing (s) being taxed. The property tax is an ad valorem tax.
Appeal	A legal process in which a property owner contests a value or assessment either formally or informally on taxable real or personal property. For each year, there are specific statutory dates when an appeal can be made.
Assessed Value	The value of property established by taxing authorities on the basis of which the tax rate is applied.
Assessment	The determination as to the value of property that is often used in the levying of property taxes.
Assessment Appeal	A hearing before an Assessment Appeals Board or Hearing Officer where a taxpayer can appeal the amount of the assessed value of his/her property.
Assessment Level	The percentage of full value at which property is assessed as mandated by state law.
Assessor	The elected official whose legal responsibility is to discover, list, classify, and value (appraise) all real and personal property located in his/her jurisdiction.
Classification	The determination of the type of property to be assessed: land, improvements, personal property, fixtures, etc.
Commercial/ Industrial or Business Property	Property used for commercial purposes, i.e., the buying or selling of goods or services, and not for dwelling purposes.
Comparable Sales	Comparable sales are the most common type of evidence used in residential appeals. They represent actual sales of similar types of properties.
Equalization	The process of providing uniform aggregate assessments between townships and counties.
Fair Market Value	It is the price that property would sell for in the open market. It is the price agreed upon by a willing buyer and a willing seller in an "arms length" transaction. The price which a seller of property would receive in an open market by negotiation, as distinguished from a "distress" price on a forced or foreclosure sale, or from an auction.
Improvement	Any structure, addition or other product of labor which is attached, lying upon or within the land that may not be removed without physical stress.
Levy	The amount of money that a taxing body requires to be collected through the property tax system.
Multiplier	A figure used by county and state officials and applied uniformly to all parcels within a township to "equalize" assessments between townships and countries so that all values reflect the same assessment level.
Personal Property	All tangible property except real property (real estate)
Property Tax Appeals Board	A state-level panel of commissioners who review appeals by property owners who are not satisfied with decisions rendered by assessors.
Property Tax	A tax levied on real property for its assessed value which is usually expressed at a uniform rate per thousand of valuation.
Real Estate	Land and anything permanently affixed to the land.
Real Property	Land and anything affixed to the land. Also refers to the interest, benefits, and rights inherent in the ownership of real estate.