Glossary of Terms

  • Ad Valorem - A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of exemptions, use-value assessment provisions, and the like, the property tax is an ad valorem tax.
  • Appellant - One who applies for a change of the assessed value of a property.
  • Fair Market Value - The most probable price a property would bring after a reasonable time on the open market - at the time of the valuation - when it is offered for sale by one who desires - but is not obliged - to sell it, and is bought by one who desires - but is under no necessity of having it (i.e. an arm’s length transaction), and both the buyer and seller are aware of the property’s current and potential use.
  • Grantor - One who voluntarily conveys property, whether by sale, gift, lease, or otherwise.
  • Grantee - One who acquires property by voluntary conveyance.
  • Improvement - Any erected structure - such as a home, garage, or outbuilding - on real property.

Note: As defined by the IAAO 2015 glossary