New Jersey property-tax definition
Tax rate vs. effective tax rate
The municipal tax rate is applied to assessed value; an effective tax rate expresses tax relative to estimated true market value, making cross-town comparisons more meaningful.
Worked New Jersey example
Two towns can show very different nominal rates simply because their assessment levels differ.
Why it matters
Watchdog keeps the definition beside the property data so users can distinguish an observed public record from an interpretation or derived screening signal.
Official source
For homeowners
Use the term to understand what a tax or assessment record is actually saying before assuming it represents market value or a future bill.
For professionals
Keep the source and observation date with the number, verify the authoritative record, and document any calculation or professional conclusion separately.