In determining local property taxes on a property:

The correct approach to determining local property taxes on a property involves a nuanced assessment process. Firstly, properties are typically assessed by considering land and improvements separately, allowing for a more accurate valuation of each component. This method takes into account that land has its own potential value, which can differ from the value of the structures built upon it.

Once the assessments for both land and improvements are completed, each component is then multiplied by its respective tax rate. This results in a more refined calculation that can reflect varying tax rates based on the type of property or local jurisdictional rules.

In many jurisdictions, this separate assessment allows for greater flexibility and fairness in taxation, as improvements may influence the property's overall market value differently than the land itself. This stands in contrast to evaluating the property as a single entity or using a uniform rate for both components, which can obscure the complexities of property value as it relates to tax obligations.