John Cirincione,SRA,CRE has more than 25 years of experience in the appraisal industry. Currently, he is Chief Appraiser at Secolink Settlement Services, LLC Keybank and also serves as the Appraisal Institute's Technology Representative.

What is assessed value?
The assessed value is what your taxing authority (your county, city or town) uses to determine how much tax is due. In some cases, the assessed value might be the same as market value, but typically it is a percentage, called the assessment ratio.

How is assessed value used to calculate my tax bill?
The specifics vary among different localities, but generally, the taxing authority calculates a percentage of what it considers to be the market value of your home. For example, if the assessed value were 30 percent of the market value, a house that might sell for $90,000 would be taxed at an assessed value of only $30,000. If the tax rate were 3 percent of the assessed value, the annual tax bill would be $900.

How reliable is the assessed value or market value?
Again, that depends on a number of factors, including when the assessment was made, whether accurate information about the property was used, and the differences among specific assessment procedures.

How often is my home assessed for tax purposes?
The period between assessments varies by jurisdiction. Some taxing authorities might conduct full assessments every 6 years, for instance, but update their records annually to account for new homes or building improvements.

Can I challenge the tax assessment?
Yes, and you should if you believe the taxing authority has inflated the market value of your property. The best way to challenge the valuation is to hire a certified appraiser to recalculate the market value. Or, if you bought your house recently and the sale price was less than the assessed market value, a copy of the sales contract would bolster your position. In any event, contact your local tax assessor to learn how to appeal your tax bill.

If I appeal my taxes, could they go up?
Possibly. If your local taxing authority decides your property is actually undervalued, then yes. On the other hand, you can avoid that by having a professional appraisal before you file an appeal. Remember that an appraiser is not an advocate, so don't expect him or her to lowball the value of your property. See Appraisal FAQs for more information.