How is level of assessment defined?

The level of assessment is defined as the ratio between full and true value and market value. This concept is important in property taxation as it provides a measure of how closely assessed values reflect the actual market values of properties.

In practical terms, full and true value refers to the estimated market value at which a property would sell. When assessing properties for tax purposes, jurisdictions often use this benchmark to determine whether a property is assessed at a fair market value. The level of assessment can then be calculated as the assessed value divided by the full value or market value, allowing for a clearer understanding of how assessments align with market conditions.

This understanding helps in ensuring equitable taxation across various properties, maintaining fairness in the valuation and taxation process. Other definitions, while they may relate to valuation concepts, do not accurately capture the essence of level of assessment as it pertains to property appraisal and taxation.