Glossary
Taxes & Insurance
Assessed Value
The value a local taxing authority assigns to a property, multiplied by the applicable tax rate, or mill rate, to calculate the property's tax bill. Assessed value is the figure your firm verifies against the lease's tax pass-through language, since an inflated assessment raises every tenant's tax-based CAM charge.
Firm impact
Because the tax bill is a direct function of assessed value, an error or a disputed reassessment at the assessment stage carries straight through to every tenant's pro-rata tax charge. Firms should treat the assessed value as a verifiable public record, not just a number reported by the landlord.
How this gets abused
A county's public assessment record lists a property's assessed value at $8.2 million, but the CAM reconciliation computes the tax pass-through using a figure of $9.4 million with no explanation for the difference. The gap flows directly into every tenant's tax charge for the year.
Practitioner note
Pull the assessed value directly from the county or municipal assessor's public record and compare it against the figure the reconciliation statement uses to calculate the tax pass-through. A mismatch is grounds to request the actual tax bill before accepting the reconciliation's math.
Related terms
FAQ
Questions about assessed value
Where can a firm verify a property's assessed value?
Most county or municipal tax assessor offices publish assessed values in a public online record. That record is the source to check against the figure used in a CAM reconciliation.
What is a mill rate?
A mill rate is the tax rate applied to assessed value, expressed as dollars owed per thousand dollars of assessed value. Multiplying assessed value by the mill rate produces the tax bill.
You know the term. Now check the math.
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