Definition of Property Tax Assessment

• Property tax assessment is the process of determining the taxable value of a property.
  
• It forms the basis for calculating the amount of property tax payable.
  
• The assessment is carried out by the local municipal or tax authority.
  
• It considers various property-related factors to arrive at a fair value.
  
• The assessed value is recorded in official property tax registers.
  

Purpose and Significance

• Ensures accurate and equitable taxation of properties within a jurisdiction.
  
• Helps local bodies raise revenue for civic services and infrastructure.
  
• Maintains updated records of property ownership and usage.
  
• Assists in planning urban development and public service delivery.
  
• Reduces disputes by providing a documented valuation basis.
  

Factors Considered in Assessment

• Location and zoning classification of the property.
  
• Type and usage—residential, commercial, industrial, or mixed.
  
• Built-up area, land area, and construction quality.
  
• Age of the building and presence of additional amenities.
  
• Market rental or capital value depending on the adopted method.
  

Types of Assessment Methods

• Annual Rental Value (ARV): Based on the potential annual rent the property can earn.
  
• Capital Value System: Based on the market value of the land and structure.
  
• Unit Area System: Based on per-unit area value multiplied by the built-up area.
  
• The method used depends on the city’s municipal tax policy.
  
• Each system has predefined rates and formulas set by the authority.
  

Process and Frequency of Assessment

• Initial assessment is done when a new property is constructed or occupied.
  
• Reassessment is conducted when there is a change in structure or usage.
  
• General revisions occur periodically, such as every five years.
  
• Assessment involves field inspection, record verification, and owner declarations.
  

Taxpayers receive an official notice indicating the assessed value and calculation details.