PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
The assessment ratio is the percentage of fair market value used to establish taxable assessed value.
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 Assessment ratio mean?
The assessment ratio is the percentage of fair market value used to establish taxable assessed value. Georgia generally assesses taxable property at 40 percent of fair market value unless a specific law provides otherwise.
How do you separate the nearest exam answer?
Fair market value estimates the property's full value. Assessed value is the taxable base after the assessment ratio and applicable exemptions are considered.
What changes or stays the same in Georgia?
For standard Georgia exam calculations, multiply fair market value by 40 percent before applying the millage rate.
A home with a $350,000 fair market value has a $140,000 assessed value before exemptions because $350,000 × 0.40 = $140,000.
Applying mills directly to fair market value skips the assessment step and overstates the tax.
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 Georgia home has a fair market value of $250,000, the millage rate is 30 mills, and no exemptions apply. What is the annual property tax?
- A
$7,500
- B
$4,500
- C
$300
- D
$3,000
Georgia assesses at 40 percent of fair market value, so the assessed value is $250,000 times 0.40, or $100,000. Thirty mills is 0.030, and $100,000 times 0.030 equals $3,000. The $7,500 answer applies the mills straight to market value and skips the assessment step.
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