What does the effective tax rate reflect?

The effective tax rate is defined as the ratio between the current tax bill and the property value. This measurement provides insight into how much of the property's value is being paid in taxes and is typically expressed as a percentage. By examining this relationship, property owners and assessors can gain a clearer understanding of the tax burden in relation to the value of the property.

This concept is critical for property tax assessments, as it helps in determining fairness and equity in the taxation process. It allows stakeholders to compare tax burdens across different properties and to understand the impact of tax policy at a local level. Therefore, choosing the ratio of the current tax bill to the property value accurately captures the essence of what the effective tax rate represents.