Which aspects are considered in the calculation of the overall rate (OAR)?

The overall rate (OAR) is an important metric used in property assessment and valuation, reflecting various financial factors that impact the value of a property. The correct choice identifies discount rates, recapture rates, and effective tax rates as key components of the OAR calculation.

Discount rates are used to determine the present value of future earnings from a property, providing insight into how the time value of money affects investment returns. Recapture rates relate to the return on investment that an owner can expect to receive, particularly when considering the depreciation of a property over time. Effective tax rates incorporate the financial obligations associated with property ownership, giving a clearer picture of the costs that contribute to the property’s overall financial performance.

Incorporating these rates ensures the OAR reflects a comprehensive analysis of the property's potential return on investment. Understanding the interplay of these financial metrics is crucial for assessors who need to evaluate and forecast property values accurately.

The other choices do not encapsulate the complete essence of the OAR. While interest and capitalization rates certainly play a role in property valuation, they do not fully account for all aspects included in the OAR. Property management costs are important for operational budgeting but are not directly related to the overall rate calculation focused on investment return. Comparing market