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Definition. Process by which a taxation authority (such as a state or municipality tax board) tries to ensure that all taxable property under its jurisdiction is assessed for property taxes at the same percentage of its market value.This percentage is called equalization rate.efinition. Process by which a taxation authority (such as a state or municipality tax board) tries to ensure that all taxable property under its jurisdiction is assessed for property taxes at the same percentage of its market value.
Definition of 'Capitalization Rate'. Definition: Capitalization rate, commonly known as cap rate, is a rate that helps in evaluating a real estate investment. Description: Capitalization rate shows the potential rate of return on the real estate investment. The higher the capitalization rate, the better it is for the investor.