The property tax system is based on the fundamentals of assigning a dollar value to each property for the purposes of taxing property in a fair and consistent manner. The terms ‘assessment’ and ‘taxation’ are not interchangeable. ‘Assessment’ is the process of estimating a dollar value of a property. ‘Taxation’ is the process of applying a tax rate to a property’s assessed value to determine the taxes payable by the owner of that property.
Properties are grouped into classes based on similar characteristics and fixed tax rates are used for each class. This approach is considered equitable in that properties of the same nature and value pay the same amount of tax. Higher valued properties will pay more tax based on the principle that those property owners have a greater ability to pay based on property wealth.
Click on one of the following links for a more detailed explanation of how the property assessment and taxation system works.