Which type of property has an assessment ratio of 10.5%?

The correct answer identifies that manufacturing and certain tangible personal property often have a distinct assessment ratio due to the unique nature of their valuation in the context of property taxation. These properties may be assessed differently compared to residential properties because they can contribute to economic development and job creation. As a result, various jurisdictions may implement specific assessment ratios, such as 10.5%, to incentivize investment in manufacturing sectors or to address the unique depreciation and obsolescence issues that tangible personal property may face.

Primary and secondary residences typically have different assessment ratios that are set with an emphasis on providing equitable tax treatment to homeowners. These ratios often reflect local policies aimed at promoting homeownership. Private passenger motor vehicles are also generally assessed based on market value and follow consistent vehicle taxation practices, which do not typically use a ratio like 10.5%. Thus, manufacturing and certain tangible personal property have specific needs that lead to their unique assessment treatment, justifying the 10.5% assessment ratio.