For your convenience we have listed below the definitions for a number of terms that you may not be familiar with that are frequently used regarding your property valuations.
Ad Valorem – this term means “according to value”.
Assessed Value – The value placed upon a property after dividing the market value by three. (1/3 of Market Value)
Assessment – The official act of discovering, listing and appraising property for ad valorem tax purposes-currently 33.33% of the market value.
Assessment Level – The percentage of full value at which property is assessed as mandated by state law.
Assessor – The government official responsible for establishing the value of property for ad valorem tax purposes.
Board of Review – A panel of three residents of a county, experience in real estate appraisal, who review complaints filed by individual taxpayers. The Board of Review has specific statutory responsibilities to perform during a designated period of time.
Equalization – The process of providing uniform aggregate assessments between townships and counties (see multiplier).
Equalized Value – The assessed value multiplied by the county and/ or state multiplier. This calculation gives the value of the property to which the tax rate is applied.
Extension – This term is used in two different contexts. 1) The process in which the County Clerk determines the tax rate needed to raise the revenue certified to the Clerk by each taxing body in the county; and 2) The actual dollar amount of revenue resulting from the tax rate when it is multiplied by the assessed value of a district.
Fair Cash Value – The amount a property can be sold in due course of business and trade, not under duress, between a willing buyer and a willing seller.
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.
Market Value – The most probable price, estimated in terms of money, which a property would bring in a sale between a willing buyer and seller under arms length conditions.
Mass Appraisal – This is the process of valuing a universe of property by employing a common reference for data in allowing for statistical testing.
Multiplier – A figure used by county and state officials and applied uniformly to all parcels within a township to “equalize” assessments between townships and counties so that all values reflect the same assessment level.
Permanent Index Number (PIN) – a 10-digit number used to identify property for tax purposes. The number is used in place of lengthy legal descriptions.