Real Estate Math
A property tax calculated as a percentage of the property's assessed value, literally 'according to value.'
Ad valorem taxes are the primary source of revenue for local governments and school districts in New York. The tax is calculated by multiplying the property's assessed value by the local tax rate (expressed as a mill rate or percentage). The assessed value is determined by the local assessor and may differ from market value depending on the equalization rate. Property owners can challenge their assessment through the Board of Assessment Review or judicial proceedings if they believe the assessed value is too high.
Exam Tip
Tax = Assessed Value × Tax Rate. The equalization rate converts assessed value to market value. Know how to calculate property tax using mill rates (1 mill = $1 per $1,000 of assessed value).
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Real Estate Math
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