What is an assessment ratio?

An assessment ratio is a figure used by the state of Virginia to determine how much a property is taxed. It is determined by taking the assessed value of the property and dividing it by the fair market value of the property. This ratio is applied to the fair market value to calculate the assessed value which is used to calculate the property tax. In Virginia, the assessment ratio is fixed at a universal rate of 0.84. This means that regardless of the fair market value of a property, the assessed value of the property will be 0.84 times the fair market value. For example, if the fair market value of a property is $200,000, the assessed value of the property will be $168,000 ($200,000 x 0.84). The local tax assessor must adjust the ratio occasionally to keep it current to reflect changes in the real estate market. Property taxes in Virginia are determined by multiplying the assessed value of a property by the local tax rate. This includes the combination of the local city or county tax rate and the state tax rate. For example, if the rate is 1.35%, the owner of the house with the assessed value of $168,000 would pay $2,268 in property taxes ($168,000 x 0.0135).

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