Margaret owns a small commercial warehouse in Davidson County, Tennessee, appraised at $500,000. At what percentage of appraised value will the property be assessed for Tennessee ad valorem tax purposes?
Correct Answer
C) 40%, the assessment ratio for commercial and industrial property in Tennessee
Tennessee uses different assessment ratios for different property classifications. Commercial and industrial property is assessed at 40% of appraised value under Tennessee Code Annotated § 67-5-801. Margaret's warehouse, as commercial property, will be assessed at $500,000 × 40% = $200,000.
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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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