Definition of Terms.
Section 3
SEC. 3. Definition of Terms.—When used in this Code. Actual use—shall refer to the purpose for which the property is principally or predominantly utilized by the person in possession of the property. Ad Valorem tax—is a levy on real property determined on the basis of a fixed proportion of the value of the property. Agricultural land—land devoted principally to the raising of crops such as rice, corn, sugar cane, tobacco, coconut, etc., or to pasturing, dairying, inland fishery, salt-making, and other agricultural uses, including timberlands and forest lands. Appraisal—is the act or process of determining the value of a property as of a specific date for a specific purpose. Assessment—the act or process of determining the value of a property, or proportion thereof, subject to tax, including the discovery, listing and appraisal of properties. Assessment level—is the percentage applied to the market value to determine the taxable or assessed value of the property. Assessed Value—the value placed on taxable property by the assessor for ad valorem tax purposes. The assessed value when multiplied by the tax rate will produce the amount of tax due. It is synonymous to "taxable value." Commercial land—land devoted principally to commercial purposes, and generally for the object of profit. Depreciated value—the value remaining after deducting depreciation from either the replacement cost or the reproduction cost. Economic life—the estimated period over which it is anticipated that a machinery may profitably be utilized. Improvements—is a valuable addition made to property or an amelioration in its condition, amounting to more than mere repairs or replacement of waste, costing labor or capital, and intended to enhance its value, beauty or utility or to adapt it for new or further purposes. Industrial land—land devoted principally to industry as capital investment. Machinery—shall embrace machines, mechanical contrivances, instruments, appliances and apparatus attached to the real estate. It includes the physical facilities available for production, as well as the installations and appurtenant service facilities, together with all other equipment designed for or essential to its manufacturing, industrial or agricultural purposes. Market value—is defined as "the highest price estimated in terms of money which the property will buy if exposed for sale in the open market allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used." It is also referred to as "the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure." Mineral lands—are those lands in which minerals exist in sufficient quantity or grade to justify the necessary expenditures to be incurred in extracting and utilizing such minerals. Original cost—for newly acquired machinery not yet depreciated and appraised within the year of its purchase, refers to the actual cost of the machinery to its present owner (plus the cost of transportation, handling and installation at the present site). Reassessment—the assigning of new assesed values to property, particularly real estate, as the result of a general, partial or individual reappraisal of the property. Remaining economic life—the period of time (years) from the date of appraisal to the date when the machinery becomes valueless. Remaining value—the value corresponding to the remaining useful life of the machinery. Replacement or reproduction cost (new)—the cost that would be incurred on the basis of current prices, in acquiring an equally desirable substitute property, or the cost of reproducing a new replica property on the basis of current prices with the same or closely similar material. Residential land—land principally devoted to habitation.