Ad Valorem Tax
"According to value" — property tax levied as a rate applied to assessed value. The link between assessment and market value is what makes tax appeals possible when assessments outrun the market.
Related Terms
Special Assessment
A charge against specific properties to fund an improvement that benefits them — sewers, sidewalks, road paving.
Equalization Ratio (Chapter 123 Ratio)
The ratio of a municipality's average assessed values to average true market values, published annually by the NJ Division of Taxation.
More in Legal & Regulatory
View allUniform Standards of Professional Appraisal Practice (USPAP)
USPAPThe nationally recognized ethical and performance standards for the appraisal profession, established by The Appraisal Foundation.
FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act)
FIRREAThe 1989 federal law that established the modern appraisal regulatory framework, requiring state licensing of appraisers and USPAP compliance for all federally related real estate transactions..
Dodd-Frank Act (Appraisal Provisions)
The 2010 federal financial reform law that included significant appraisal provisions: appraiser independence requirements, AMC registration, customary and reasonable fee mandates, and prohibition of BPOs for origination..
Appraiser Independence
The legal requirement that appraisers must be free from improper influence, coercion, or pressure from parties with a financial interest in the transaction outcome.