Key Terms - Chapter 3

Question 1

ad valorem

Answer 1

according to value

Question 2

appraisal

Answer 2

the process of determining a market value

Question 3

assessed value

Answer 3

the value placed upon property for purposes of taxation

Question 4

assessment

Answer 4

the determination of a value of the property for taxation purposes

Question 5

market value

Answer 5

The value the market places on a property

Question 6

mill rate

Answer 6

A tax rate based upon one-tenth of one cent. This equates to one-thousandth of a dollar.

Question 7

mills

Answer 7

The tax rate is

typically stated in terms of “x” number of mills (i.e., 15 mills).

Question 8

horizontal adjustment

Answer 8

A horizontal adjustment upward or downward may be made at the four-year interval between the eight-year adjustments. Every property is adjusted the same percentage.