PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Assessed value is the taxable value produced by applying the legal assessment ratio to fair market value before subtracting any exemption the problem or jurisdiction directs.
Finance and Closing
Georgia taxes and closing math
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Assessed value mean?
Assessed value is the taxable value produced by applying the legal assessment ratio to fair market value before subtracting any exemption the problem or jurisdiction directs.
How do you separate the nearest exam answer?
Fair market value represents full value. Assessed value is the statutory tax base. Taxable assessed value may be lower after exemptions.
What changes or stays the same in Georgia?
Georgia generally uses 40 percent of fair market value. A $300,000 fair market value therefore produces $120,000 assessed value before exemptions.
A home valued at $425,000 is assessed at $170,000 because $425,000 × 0.40 = $170,000.
Do not subtract an exemption from fair market value unless the problem or governing rule specifically instructs that order.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A home's fair market value is $350,000. The problem says to apply Georgia's 40 percent assessment ratio first and then subtract a $2,000 exemption. What is the taxable assessed value?
- A
$139,200
- B
$138,000
- C
$140,000
- D
$348,000
Apply the ratio first: $350,000 × 40 percent = $140,000, then subtract the exemption to reach $138,000. Subtracting the exemption from market value first gives $139,200, the order the problem told you not to use. $140,000 forgets the exemption entirely.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Finance and Closing complete lesson
https://www.passgeorgiarealestate.com/blog/georgia-property-tax-millage-calculations
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Official source for fair market value, the 40 percent assessment ratio, and ad valorem taxation.
https://dor.georgia.gov/property-tax-valuation