Equalization of Taxes Law and Legal Definition

Equalization of taxes is a process of adjusting the aggregate values of property as between different taxing districts, so that the value of the whole tax imposed on each taxing district is justly proportioned to the value of the taxable property within its limits, so that one county or taxing district should not pay a higher tax in proportion to the value of its taxable property than another. Equalization of taxes is necessary to fulfill constitutional requirements of equality and uniformity in taxation.

It is the process of raising or lowering the total assessments on all the property in a taxing district to equalize them with the total assessments in other taxing districts of the same kind in the state, or of raising or lowering the entire assessment on a given class of property. For example, as mining rights, in order to equalize it with the total assessment made with respect to other classes of property in the taxing district in question, or other taxing districts, or with the total assessment on the same class of property in other taxing districts.