Assessment

DEFINITION of 'Assessment'

Occurs when an asset's value must be determined for the purpose of taxation. This term also doubles as the name of the actual tax being levied in many cases. Assessments are made annually on some property, such as homes and cars. Other assessments may be made only once.

BREAKING DOWN 'Assessment'

Assessments can be made according to various criteria. For example, homes are valued according to their physical condition, as well as comparable values of surrounding residences. Property tax on cars is assessed according to book value.

RELATED TERMS
  1. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  2. Tax Base

    The assessed value of a set of assets, investments or income ...
  3. Assessable Security

    A type of stock that companies issued to investors at a discount ...
  4. Assessable Capital Stock

    The capital stock of any bank or financial institution that could ...
  5. Special Assessment Tax

    The levy assessed against the portion of a property that has ...
  6. Reassessment

    The process of redetermining the value of a parcel of real estate ...
Related Articles
  1. Home & Auto

    This Is How Property Taxes Are Calculated

    Understanding how property taxes work will ensure that you won't be overcharged.
  2. Home & Auto

    How Property Taxes Are Calculated

    Property taxes are calculated through use of the mill levy and the assessed property values.
  3. Home & Auto

    Your Property Tax Assessment: What Does It Mean?

    Property taxes are a primary source of revenue for governments, and they’re a big expense for homeowners. They can vary widely depending on where you live.
  4. Taxes

    What is an Ad Valorem Tax?

    An ad valorem tax is a levy placed on real or personal property based on the assessed value of that property.
  5. Taxes

    The 7 Best States For Property Taxes, and Why

    Understand why some states have high property taxes while others have low property taxes. Learn about the states with the lowest property taxes.
  6. Economics

    Explaining Fair Market Value

    Fair market value is the price at which a buyer and seller are willing to exchange a good.
  7. Taxes

    4 Little-Known Ways to Reduce Your Property Taxes

    Property taxes are often expensive and most don't know they can be appealed. Here are little known ways you can try to reduce your property tax liability.
  8. Taxes

    Understanding Taxation

    Taxation refers to the act of a taxing authority levying tax, typically a government – federal, state, county or city – collecting revenue from citizens.
  9. Taxes

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
  10. Taxes

    5 Tricks For Lowering Your Property Tax

    Find out what steps you can take to reduce your bill.
RELATED FAQS
  1. How are real estate taxes calculated?

    Find out how real estate taxes are calculated; failure to pay these taxes that can be a substantial annual expense can lead ... Read Answer >>
  2. How do modern companies assess business risk?

    Find out how modern companies can assess business risks, how those risks can be identified and categorized, and why there ... Read Answer >>
  3. What can cause an asset to trade above its market value?

    Learn some of the factors that can affect the price of an investment asset and the major reasons why an asset might trade ... Read Answer >>
  4. What does it mean if a share's market value is significantly higher than its book ...

    Learn how investors and analysts compare the market value of stock shares to the book value per common share; discover what ... Read Answer >>
  5. How does fundamental analysis differ from technical analysis?

    Learn about the differences between technical analysis and fundamental analysis, such as how these investment strategies ... Read Answer >>
  6. If my spouse passes away, will I have to sell my home to meet creditor obligations?

    There are laws that can protect, to a certain extent, the value of a home from property taxes and creditors following the ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center