How are property values assessed?
Assessment of property values is the heart of all property taxation systems. Without sound and reliable assessment procedures, a property taxation system is unlikely to be fair. Property tax is a tax on real value, and assessment determines the real properties value. So, what is assessment? Assessment is the process whereby the local tax base, made up of real property and interests therein, is appraised for the purposes of local taxation. A leading Canadian tax expert has defined property assessment as follows: “It is the official act of discovering, listing and valuing property by appointed assessors or appraisers. The result of an assessment determines which properties will provide the base for local tax levies and the share of taxation that each property owner will bear.” The biggest problem facing local governments taxing real property is obtaining accurate assessments. To avoid uneven or unfair assessments, the assessment system used by a taxing government must be detailed and com
