assessment ratio

assessment ratio definition - business

assessment ratio

The ratio of an asset's assessed valuation to the same asset's market valuation. If the assessment ratio is 40%, a home with a market value of $200,000 will be taxed at an assessed valuation of $80,000. Taxing authorities establish an assessment ratio in order to generate the appropriate amount of tax revenues.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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