For tax jurisdictions that cross town lines (like the county or a school district) it wouldn't be fair to apply the same tax rate against all assessments since Town A may be assessing at market value and Town B may not. The assessments for these towns are all brought up to market value, or “equalized,” by dividing the sum of assessments by the equalization rate for that town before tax rates are calculated. This ensures that a property with a market value of $300,000 in Town A pays the same amount of tax as a $300,000 property in Town B, despite the fact that assessments are at different levels in the two towns.
A tax rate of $1.05/1,000 for School H in Town A (which assess at market value) is the same as a tax rate of $2.10/1,000 for School H in Town B which assesses at 50% of market value.
Furthermore, some exemptions (like the Alternative Veterans and Cold War Veterans exemptions) may be adjusted by the equalization rate so that the full exemption value is the same for all recipients.across all municipalities in the tax jurisdiction.