Key Terms

Key Terms

Assessed Value (AV) - AV is 50% of the usual selling price or true cash value of your property.
 
State Equalized Value (SEV) - SEV is the assessed value as finalized by the county and state equalization process.  In most municipalities the SEV and AV will be the same.
 
Capped Value - The capped value will be the prior year's Taxable Value minus losses increased by the consumer price index or 5% whichever is less, plus additions.
 
Losses are a component of your property which is physically removed. for example, the removal of a garage.
 
Additions are a component of your property which is physically added.  For example, adding a family room or finishing a basement.
 
Taxable Value (TV) - Taxable Value is simply the lesser of State Equalized Value or Capped Value. 
Homeowners Principal Residence Percentage - This represents the portion of your property that you own and occupy that is exempt from some school taxes.
 
Qualified Agricultural Exemption - This represents property devoted primarily to agricultural use that is exempt from some school taxes.
 
Property Transfer - In the year following a transfer of ownership the taxable value is uncapped and will equal the SEV.  The process of capped value resumes the next year until the ownership is transferred again.
 
Property Transfer Affidavit - An affidavit must be filed with the assessor in the unit the property is located by the buyer within 45 days of a transfer.  Failure to do so could result in a fine of $5.00 a day up to $200.00.
 
TAXABLE VALUE IS WHAT YOUR TAXES WILL BE BASED ON!