Property Valuation
What is 'assessed value' in Rhode Island and how is it used?
AThe value an appraiser assigns for a bank loan
BThe value assigned by the municipality's tax assessor, used as the basis for calculating property taxes✓ Correct
CThe value set by the state for eminent domain purposes
DThe sale price agreed upon by buyer and seller
Explanation
Assessed value is the value placed on property by the local tax assessor for property tax purposes. In Rhode Island, each municipality sets assessed values, which are typically a percentage of full fair market value, and multiplies them by the tax rate to determine property taxes.
Related Rhode Island Property Valuation Questions
- A Rhode Island appraiser identifies a property's 'effective date' of appraisal. This refers to:
- Which of the following is considered external (economic) obsolescence affecting property value?
- In Rhode Island, what is 'depreciation' in the context of the cost approach to appraisal?
- A Rhode Island appraiser's final appraisal report must be signed by:
- Reproduction cost in the cost approach refers to:
- In Rhode Island appraisal, what is 'assemblage'?
- Functional obsolescence in a Rhode Island property would be best illustrated by:
- The income capitalization approach converts a property's net operating income (NOI) into value using the formula:
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