What is the term used for the ratio of assessed value to the market value of property?

The term used for the ratio of assessed value to the market value of property is known as the assessment ratio. This ratio is critical in the field of property assessment as it helps determine how accurately properties are being valued for taxation purposes. It reflects the percentage of a property's market value that is being captured in the assessed value.

Understanding the assessment ratio is essential for maintaining equity among taxpayers. If properties are assessed uniformly at a certain percentage of their market value, this ensures that all property owners are contributing fairly based on the value of their property. For example, if a property’s market value is $100,000 and it is assessed at $85,000, the assessment ratio would be 85%.

In contrast, the other terms may suggest similar concepts but are not standardized or recognized in property assessment terminology. The market value ratio and fair market ratio are not commonly used in the context of property assessment, while the value adjustment ratio could imply changes or adjustments made after an assessment but does not directly refer to the fundamental assessment ratio itself. Therefore, the assessment ratio is indeed the correct term used in this context.