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 Deduction

    State and local property taxes that are generally deductible ...
  3. Property

    1. Anything over which a person or business has legal title. ...
  4. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  5. Millage Rate

    The amount per $1,000 that is used to calculate taxes on property. ...
  6. USDA Non-Streamlined Refinancing

    A mortgage-refinancing option offered by the United States Department ...
Related Articles
  1. Home & Auto

    4 Overlooked Homeownership Costs

    Mortgage payments aren't the only expense. Find what else you'll be on the hook for.
  2. Home & Auto

    How Property Taxes Are Calculated

    Understanding how property taxes work will ensure that you won't be overcharged.
  3. Taxes

    5 Tricks For Lowering Your Property Tax

    Find out what steps you can take to reduce your bill.
  4. Home & Auto

    Best Types of Remodels For A Smart Sale Strategy

    Consider these improvements to your home if you want to increase its resale price.
  5. Investing Basics

    What are the potential pitfalls of owning REITs?

    Learn about pitfalls to investing in REITs, such as investors having to pay income tax, the REIT having to pay property tax and the REIT losing its status.
  6. Insurance

    Who are the best-rated home insurance companies in the US?

    Learn about the top rated home insurance companies in the United States based on customer satisfaction surveys. See how customers rank the top insurers.
  7. Home & Auto

    Universal Design Improvements That Increase Your Home's Value

    Universal design improvements yield great returns for homeowners, either through increased future comfort, or broader market appeal for their home.
  8. Home & Auto

    8 Common Refinance Mistakes

    As mortgage rates creep higher, there's still time to dump your mortgage rate for a lower one. But don't ruin your chance at a refinance by making mistakes
  9. Home & Auto

    10 Questions You Forget to Ask When Buying a House

    If you are thinking about buying a home, you are not alone. According to the New York Times, more Americans are getting home-buying fever.
  10. Home & Auto

    How To Refinance If Your Home Appraisal Is Too Low

    When you take out a mortgage on a home or refinance an existing mortgage, most lenders want a loan-to-value ratio (LTV) of 80 percent or lower.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center