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King County Department of Assessments

Fair, Equitable, and Understandable Property Valuations

Department of Assessments

500 Fourth Avenue,
Suite ADM-AS-0708,
Seattle, WA 98104

Office Hours:
Mon - Fri
8:30 a.m. to 4:30 p.m.

TEL: 206-296-7300
FAX: 206-296-5107
TTY: 206-296-7888

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Glossary of terms for commercial parcels

ECONOMIC LIFE
The period during which a given tangible asset, building, or other improvement to property is expected to contribute (positively) to the value of the total property.  This period is typically shorter than the period during which the improvement could be left on the property, that is, its physical life.

EFFECTIVE GROSS INCOME (EGI)
Effective gross income is Potential Gross Income less vacancy and collection loss, plus appropriate miscellaneous income.

EFFECTIVE TAX RATE
The rate expressing the ratio between the property value and the current tax bill; the official tax rate of the taxing jurisdiction multiplied by the assessment ratio.

EQUITY YIELD RATE.
The total rate of return on equity capital;  used in reference to return on equity investments as opposed to interest on mortgage loans.

EQUITY DIVIDEND RATE
The direct relationship between annual equity income and equity capital;  often referred to as the "cash on cash" rate.