Ad Valorem Tax – Based on the value of Real Property

• Funds Schools
• Pays for Police and Fire Protection
• Maintains Roads
• Funds Municipal Services enjoyed by residents

• Counties
• Cities
• Towns 
• Villages
• School Districts 
• Special Districts
• State does not Collect Property Taxes, it is a local tax

• Properties Taxable Assessment
• Tax Rate of Jurisdiction

• Every Parcel in an assessing unit is assessed.
• Real Property is defined as land and any permanent structure attached

• All Real Property is NOT taxable
• Some property is wholly exempt ( i.e. religious or government properties)
• Partially exempt (i.e. owner is a veteran or STAR exemption)

• Assessors – elected or appointed officer charged by law with the duty of assessing real property for taxation or special advalorem levies
   

• Valuation of Real Property
• Whether or not real property is subject to taxation or levies

• 100% of Market Value
   

• Highest Price estimated in terms of money
• Sale exposed for reasonable time on open market
• Buyer and Seller acting without compulsion
• Full knowledge of all uses of the property

• Utility of Property
• Scarcity
• Marketable or transferable
• Demand
• Financial Climate

• Market:  Analysis of Current Sales of Similar Property
• Cost:  Determine replacement cost of building minus physical, economic and functional depreciation
• Income:  Determine income producing ability of property minus legal expenses, capitalized

• Tax Levying Unit
• Does NOT assess real property
• Adopt town assessment rolls

1. Not an assessing unit.
2. No control of roll
3. Several town are in a district
   
   1. Different standard of assessment
   2. Different levels of expertise amongst assessors
   3. Different exemption levels
   4. Different economies