Assessed Value
Contents
Understanding Assessed Value: What It Means for Property Owners
Deciphering Assessed Value
Introduction to Assessed Value
Assessed value plays a crucial role in property taxation, representing the dollar value assigned to real estate for tax purposes. This value is influenced by various factors, including comparable property sales and local market conditions.
Understanding Assessed Value
Government assessors are tasked with determining the assessed value of properties, considering factors such as property quality, size, features, and market trends. While assessed value is not the same as fair market value, it often serves as the basis for property taxation.
Delving Into Determination
How Is Assessed Value Determined?
In most jurisdictions, assessed value is calculated as a percentage of the property's fair market value. However, the assessment ratio can vary significantly between states, impacting property tax obligations.
How Are Property Taxes Calculated?
Property taxes are determined using a formula that incorporates the assessed value, assessment ratio, and millage rate. Understanding this equation helps property owners anticipate their tax liabilities accurately.