Definition:
Assessed value is the estimated market value of a property as determined by a government tax assessor. It’s used to calculate property taxes.
Key points about assessed value:
- Property taxes: The assessed value is multiplied by the property tax rate to determine the property tax liability.
- Reassessment: Assessed values are typically reassessed periodically to reflect changes in property values.
- Appeals: Property owners may appeal the assessed value if they believe it is too high.
- Factors affecting assessed value: Factors that can affect assessed value include the size of the property, its location, its condition, and recent sales of comparable properties.
Why is assessed value important?
- Property taxes: Assessed value is the basis for calculating property taxes.
- Property valuation: Assessed value can be used as a reference point for determining the market value of a property.
- Government revenue: Assessed value is a significant source of revenue for local governments.
It’s important to note that assessed value may not always be equal to the actual market value of a property. Property owners may need to appeal their assessed value if they believe it is too high.
