What is the assessed value of a property?

The assessed value of a property is the value assigned to that property for tax purposes. This value is determined by local tax assessors and is typically based on a percentage of the market value of the property. The assessed value is used to calculate property taxes, ensuring that property owners contribute a fair share to local funding needs such as schools, roads, and public services.

While market value reflects what a property would sell for in the open market, the assessed value may not always align perfectly with this figure due to adjustments by tax authorities. This can lead to disparities where the assessed value can be lower or higher than the market value, depending on local assessment practices and regulations.

The other options, while related to property valuation, do not accurately define assessed value. For instance, determining value through a state appraisal process may or may not impact the specific assessed value used for taxation. Similarly, a property's value based on a previous sale price might inform appraisals but doesn't directly represent how the assessed value is computed for taxation purposes. Thus, understanding assessed value specifically as the value used for tax determination is crucial for tax collection practices.