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.

  1. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  2. Assessable Capital Stock

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

    State and local property taxes that are generally deductible ...
  4. Millage Rate

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

    1. Anything over which a person or business has legal title. ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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