What is the process by which a legal valuation is placed on taxable property called?

• A. Property assessment
• B. Appraisal
• C. Reassessment
• D. Taxation

Answer: (D)

Property assessment is the process by which a local assessor assigns a value to taxable property for the purpose of calculating taxes. This valuation, often called the assessed value, serves as the basis for property tax bills. Appraisal, by contrast, is a valuation of property for sale or mortgage purposes and reflects market value rather than tax value. Reassessment is the act of updating values to reflect changes in the market or property, while taxation is the levy and collection of taxes based on those values. So the term that fits the idea of placing a legal valuation on taxable property is property assessment.