Assessment

AAA

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.

INVESTOPEDIA EXPLAINS '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. Assessable Capital Stock

    The capital stock of any bank or financial institution that could ...
  2. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  3. Property

    1. Anything over which a person or business has legal title. ...
  4. Millage Rate

    The amount per $1,000 that is used to calculate taxes on property. ...
  5. Property Tax Deduction

    State and local property taxes that are generally deductible ...
  6. USDA Non-Streamlined Refinancing

    A mortgage-refinancing option offered by the United States Department ...
Related Articles
  1. How Property Taxes Are Calculated
    Home & Auto

    How Property Taxes Are Calculated

  2. 4 Overlooked Homeownership Costs
    Home & Auto

    4 Overlooked Homeownership Costs

  3. 5 Tricks For Lowering Your Property ...
    Taxes

    5 Tricks For Lowering Your Property ...

  4. Will You Break Even On Your Home?
    Budgeting

    Will You Break Even On Your Home?

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  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. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center