DEFINITION of 'Reassessment'
The process of redetermining the value of a parcel of real estate for property tax purposes. A reassessment is done to determine the property tax bills. Property bills are based on both the assessed value of the property and the property tax rates. A reassessment usually causes an increase or decrease in a property owner's tax bill. Different jurisdictions have different processes for assessing real property. Some reassess values once a year, some do it once every two years and others do it only when the property changes owners. Property owners who disagree with the assessed value of their properties can request a reassessment.
BREAKING DOWN 'Reassessment'
Changes in tax rates, the addition of new taxes and an overall increase or decrease in real estate values because of market conditions can also affect the amount of a property tax bill. In some jurisdictions, the taxable value of a property will be less than its assessed value because of something called a homestead exemption, which provides a minor tax break for owner-occupants.