Glossary of Terms for Tax Assessment Purposes ~~ Ocean County, NJ ~~ Tax Assessor's Office

	Glossary of Terms For Tax Assessment Purposes Ocean County Board of Taxation

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accrued depreciation.: The difference between the reproduction cost of the improvements as of October 1 of the pre-tax year, (the effective date of the appraisal,) and the market value of the improvements on the same date.
adjustments.: Mathematical changes made to basic data to accommodate a comparison.
agreement of sale.: A written contract of sale between a buyer and a seller, drawn up before the actual transfer of title.

air-conditioning.: A system designed to control room temperature and/or humidity through ventilation, air circulation, air cleaning, and/or air cooling.
allocation.: A method of estimating land value in which sales of improved properties are analyzed to establish a typical ratio of site value to total property value and this ratio is applied to the property being assessed or the comparable sale being analyzed.
amenity.: A tangible or intangible benefit of real property that enhances its attractiveness and/or value.

analysis.: The process of providing information, recommendations, and/or conclusions on diversified problems in real estate other than estimating value.
appeal.: A process in which a property owners contests the assessment on their property.
appraisal.: The process of estimating value.

appraisal report.: The written or oral communication of an appraisal.
appreciation (app).: An increase in property value.
assessment.: The official valuation of property for ad valorem taxation purposes.

assessment sales ratio.: The relationship between assessed value and market value. See also equalization.
assessment roll.: A public record that shows property assessments.
assessment/sales ratio.: The result derived by dividing the assessed value by the selling price of a particular property used as a measure of the quality of assessment.

assessor.: The person responsible for establishing assessments in a municipality.
assessor's manual.: A manual that lists specific requirements for property assessment; used as a guide.

certificate of occupancy (CO).: A written document issued by the governing authority in accordance with the provisions of the building permit. The certificate of occupancy indicates that in the opinion of the building official, the project has been completed in accordance with the building code.
class or grade construction.: Relates to quality of construction.
comparables.: A shortened term for similar property sales, rentals, or operating expenses used for comparison in the valuation process.

comparative analysis.: The process by which a value indication is derived in the sales comparison approach.
cost approach.: A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of the existing structure; deducting accrued depreciation from the reproduction cost; and adding the estimated land value plus an entrepreneurial profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised. (As of Oct. 1 of the pre-tax year.)
cost index/cost conversion factor.: A multiplier used to convert a known historical cost into an appropriate cost estimate.

date of value estimate.: In the case of a New Jersey tax appeal, October 1 of the pre-tax year.
depreciation.: In appraising, a loss in property value due to all causes.
depth factor.: A factor, or percentage, that represents the r) Thive value of a lot of a given depth as compared to the value of a lot of standard depth. See also depth table.

depth table.: A table of depth factors showing the estimated percentage relationship between the front foot value of a lot of a given depth and the front foot value of a lot of standard depth. See also depth factor.
direct sales comparison approach.: A term used to refer to the sales comparison approach.

effective age.: The age indicated by the condition and utility of a structure.
equalization.: The process by which all properties are assessed equitably at market value or at a ratio as required by law.
equalized values.: Assessed values after they have been equalized. (See equalization.)

estimate of value.: In appraising, an opinion based on an analysis of adequate data by one qualified to develop such an opinion.

fee simple estate.: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

gross living area (GLA).: The total area of finished, above-grade residential space excluding unheated areas such as porches and balconies; the standard measure for determining the amount of space in residential properties measured from the exterior of the structure.

improvements.: Buildings or other relatively permanent structures or developments located on, or attached to land.
inferential statistics.: A branch of statistics that attempts to predict the values of many observations of a variable from a few observations of that variable and related facts; the statistics calculated in such predictions.

land residual technique.: A method of estimating land value in which the net operating income attributable to the land is isolated and capitalized to produce an indication of the land's contribution to the total property value.
land-to-building ratio.: The proportion of land area to gross building area; typical land-to-building ratios for properties combine land and building components into a functional economic unit.
land value map.: An assessment map that shows the value of land by location, expressed as value per square foot, per acre, etc., depending on the type of land involved.

market rent.: The rental income that a property would most probably command in the open market; indicated by the current rents paid and asked for comparable space as of the date of the appraisal.
market value.: The major focus for assessment.
The most probable price, as of October 1 of the pre-tax year, in cash, or in terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.
mass appraisal.: The process of valuing a universe of properties as of a given date utilizing standard methodology, employing common data, and allowing for statistical testing.

reassessment.: The process in which all property within a taxing jurisdiction is revalued to assign new assessed values. See also revaluation.
revaluation.: The mass appraisal of all property within an assessment jurisdiction to equalize assessed values.

sales-assessment ratio.: A ratio derived by dividing the sale price of a property by its assessed value.
sales-ratio analysis.: A study of the relationship between assessed values and sale prices and the deviations that result from differences between the two; used to determine the efficiency and fairness of the assessment process.
standard deviation.: In statistics, a measure of the extent of absolute dispersion, variability, or scatter in a frequency distribution.

statistical analysis.: Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; techniques include statistical inference, linear, or multiple regression analysis.
statistical inference.: The process of reasoning from the specific to the general.

taxation.: The right of government to raise revenue through assessments.

Uniform Standards of Professional Appraisal Practice (USPAP).: Current standards of the appraisal profession, developed for appraisers and the users of appraisal services by the Appraisal Standards Board of The Appraisal Foundation. The Uniform Standards set forth the procedures to be followed in developing an appraisal, analysis, or opinion and the manner in which an appraisal, analysis, or opinion is communicated. They are endorsed by professional appraisal organizations.
units of comparison.: The components into which a property may be divided for purposes of comparison, e.g., price per square foot, front foot, cubic foot, room, bed, seat, apartment unit, etc.
USPAP.: See Uniform Standards of Professional Appraisal Practice .

Glossary of TermsFor Tax Assessment Purposes

Glossary of Terms
For Tax Assessment Purposes