The dollar value assigned to a property by the local tax assessor for the purpose of calculating property taxes. Assessed value may differ significantly from market value and is the base number that determines how much property tax the landlord owes and passes through to tenants.
Assessed value is determined by the county or municipal assessor using mass appraisal techniques, comparable sales, income capitalization, or cost approaches. In many jurisdictions, assessed value is a percentage of fair market value (e.g., 80% or 100%). Reassessment schedules vary: some jurisdictions reassess annually, others every 3-5 years, and some only upon sale or improvement. Assessment increases directly increase the property tax pass-through to tenants.
A property is assessed at $12M, but the landlord calculates tenant tax pass-throughs based on an internal valuation of $15M, inflating the per-tenant charge. Unless tenants check the public assessment records, the discrepancy goes unnoticed.
Look up your building's assessed value on the county assessor's website. This is public information. Compare it against the assessed value your landlord uses to calculate tax pass-throughs. They should match exactly.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
