What does 'BAM' represent in property assessment?

'BAM' in property assessment stands for Budget/Assessment x Millage. This formula is crucial in the context of property tax calculations, highlighting the relationship between the budget required by local governments, the assessed value of properties, and the millage rate that determines how much tax is owed.

In this formula, 'Budget' refers to the financial needs of a local government or taxing authority, which sets the amount of revenue needed from property taxes. 'Assessment' indicates the assessed value of properties within the jurisdiction, which is used to determine how much each property owner will contribute to the overall budget through taxes. The 'Millage' rate is a figure applied to individuals' property assessments to calculate their tax obligation, with one mill representing one-tenth of a cent.

Understanding this relationship is essential for anyone involved in property assessment, as it impacts how tax revenues are generated and can inform decisions about budgeting, funding public services, and evaluating property values. This knowledge helps evaluators ensure fair and effective property tax assessments.