Below, for your
convenience, are definitions of several terms which are used frequently
in discussing the property tax system.
According to value.
Value The value placed upon property after multiplying the assessment
level by the market value.
The official act of discovering, listing and appraising property
for ad valorem tax purposes-currently 33.33% of the market value.
Level The percentage of full value at which property is assessed
as mandated by state law.
The government official responsible for establishing the value of
property for ad valorem tax purposes.
Review A panel of three residents of a county, experience in
real estate appraisal, who review complaints filed by individual
taxpayers. The Board of Review has specific statutory responsibilities
to perform during a designated period of time.
The process of providing uniform aggregate assessments between townships
and counties (see multiplier).
Value The assessed value multiplied by the county and/ or state
multiplier. This calculation gives the value of the property to
which the tax rate is applied.
This term is use in two different context:1) The process in which
the County Clerk determines the tax rate needed to raise the revenue
certified to the Clerk by each taxing body in the county; and 2)
The actual dollar amount of revenue resulting from the tax rate
when it is multiplied by the assessed value of a district. Improvement
Any structure, addition or other product of labor which is attached,
lying upon or within the land that may not be removed without physical
The amount of money that a taxing body requires to be collected
through the property tax system.
The most probable price, estimated in terms of money, which a property
would bring in a sale between a willing buyer and seller under arms
The process of valuing a universe of property by employing a common
reference for data in allowing for statistical testing.
A figure used by county and state officials and applied uniformly
to all parcels within a township to "equalize" assessments
between townships and counties so that all values reflect the same
Index Number (PIN) A 10-digit number used to identify property
for tax purposes. The number is used in place of lengthy legal descriptions.