What is an assessment ratio?
An assessment ratio is a calculation used by the state of North Carolina to set property taxes. It is a ratio of the assessed value of a property compared to its market value. The aim of the assessment ratio is to make sure that all property owners in the state of North Carolina pay their fair share of property taxes. In the state of North Carolina, the assessment ratio is set by the North Carolina Department of Revenue. This ratio is applied to real property such as land and buildings. The assessment ratio is based on the type of property, and it is usually between six and seven percent. For example, if the market value of a property is $100,000, then the assessed value would be determined by multiplying $100,000 by the assessment ratio of 6.7 percent. This would give the property owner an assessed value of $670,000. This value is then used to calculate property taxes. Thus, the assessment ratio is an important part of property tax law in North Carolina. It helps ensure that all property owners in the state of North Carolina are paying their fair share of property taxes.
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