Ratable Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Ratable, written in plain English, along with examples of how it is used.
What is Ratable?
(Adj) When an article, property, estate etc can be valued in monetary terms so that tax rate can be applied on them, they are termed as ‘Ratable’ property
History and Meaning of Ratable
The term "ratable" comes from the verb "rate," which means to assign a value to something. In the context of taxes, a ratable property is one that has a value that can be assessed for the purpose of determining the amount of tax that is owed on it. The concept of ratable property has been around for centuries, but it has evolved over time as tax systems have become more complex and sophisticated.
Examples of Ratable
- Homeowners are required to pay property taxes each year based on the assessed value of their home, which is a ratable property.
- Businesses must also pay taxes on the value of their inventory, equipment, and other ratable assets.
- In some jurisdictions, vehicles are considered ratable property and are subject to annual taxes based on their value.
- Nonprofit organizations may be exempt from paying taxes on their ratable property if they meet certain criteria.
- In some cases, property that is considered ratable in one jurisdiction may be exempt from taxes in another jurisdiction.
Legal Terms Similar to Ratable
- Assessed value - The value assigned to a property by a tax assessor for the purpose of determining the amount of taxes owed.
- Taxable property - Property that is subject to taxation.
- Mill rate - The amount of tax per dollar of assessed value.