Property Tax and “Cap Rates”

By |2017-05-24T13:42:08+00:00March 9th, 2016|Categories: Real Estate, Tax Planning|Tags: , , , , , , , |

Many cities and towns use a simple formula involving the capitalization, or “cap rate” to calculate property tax assessments. The cap rate is determined by dividing the property’s net operating income by its sales cost.