Glossary of Terms

33 ⅓ % - means 33 ⅓ % of the actual value of real property as determined by the Department of Revenue’s Assessment/Sales Ratio studies for the three most recent years preceding the assessment year, adjusted to take into account the implementation of any changes in assessment levels since the data for such studies were calculated

Abatement - a reduction in a tax

 Ad Valorem - according to value

Appraisal - an opinion of value, supported by evidence

Assessed Value -the value placed upon property after multiplying its market value by the level of assessment

Assessment - official act of discovering, listing, appraising property, and entering a value for it on the assessment rolls for ad valorem tax purposes

Board of Review - an appeal agency in each county consisting of three members; usually appointed by the County Board. The Board of Review is a review and equalizing agency

Certificate of Error - a certificate issued by the assessing official and approved by the court to correct an error in the tax bill

Equalization Factor - factor applied to assessed valuation of each county that increases or decreases the level of assessments to the mandated level of 33 1/3% of market value. Factors are sometimes referred to as multipliers  

Equalized Assessed Value (EAV) - assessed value multiplied by any applicable equalization factor(s)

Exemption - releases a portion of property tax liability

Extension - the process in which the county clerk determines the tax rate needed to raise the revenue (levy) certified by each taxing district. The actual dollar amount billed to property taxpayers in district

General Assessment Year - the assessment year that occurs every 4 years in which all property assessments are reviewed, formerly known as quadrennial year

Market Value (Full Value) - the most probable sale price of a property in terms of money in a competitive and open market, assuming that the buyer and seller are acting prudently and knowledgeably, allowing sufficient time for the sale, and assuming that the transaction is not affected by undue pressures

Property Index Number (PIN) - 10 numbers which reflect the geographical location and legal description

Sales Ratio Study - an analysis of the percentage relationship of assessed value (AV) to market value; ratio equals prior year assessed value divided by the current year sales price (SP) (Minimum of 25 useable sales/appraisals required)

State Property Tax Appeal Board (PTAB) - the highest state quasijudicial body which hears appeals from taxpayers and taxing bodies on property tax assessment decisions by the county Board of Review