A licensee is representing a buyer purchasing a home in Sussex County, Delaware. The property is located in a municipality that levies its own property tax in addition to county and school district taxes. The buyer asks the licensee to explain how the assessed value used for each of these three tax bills is determined. Which of the following most accurately describes how assessed value is established for property tax purposes in Delaware's three-county system?
Correct Answer
D) The county conducts the official assessment, and that single assessed value is used by the county, municipality, and school district to calculate their respective tax bills.
In Delaware, the county is the official assessing authority. The county assessor determines the assessed value for each parcel, and that single county-determined assessed value is then used as the base by all overlapping taxing jurisdictions — including the county itself, any municipality within the county, and the local school district — each of which applies its own millage rate to that common assessed value to calculate its portion of the tax bill. This is why a homeowner in an incorporated municipality in Sussex County receives multiple tax bills, all referencing the same county-assessed value but with different millage rates applied.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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