Assessed value refers to the dollar value assigned to a property for the purpose of determining property taxes. This value is established by a public tax assessor and is used to calculate the property taxes owed by the property owner.
Overview
Purpose: The primary purpose of the assessed value is for property tax calculation. It determines the tax liability of the owner based on local tax rates and the assessed valuation.
Types of Property: Assessed values can apply to both real property (such as land and buildings) and personal property (such as vehicles and equipment).
How It’s Determined
Tax assessors determine assessed value by taking into account the property’s:
- Market value.
- Improvements and additions.
- Use and condition.
The methods and formulas for assessed value can vary by jurisdiction, but it often comprises a percentage of the market value.
Legal Basis and Reference
The process and rationale behind assessed values are governed by local and state laws, often defined in detail within state property tax codes. For example, in the United States, property tax regulations can generally be found under state statutes or regulations.
Importance
Assessed values are crucial for both governmental budgets and property owners, as these determine the amount of tax revenue a municipality can expect and impact each property owner’s fiscal responsibilities.
External Links
- For further reading and detailed descriptions of property tax laws in the U.S., visit Internal Revenue Service - Federal Tax Information on Real and Personal Property
- Consult local government websites for specific property taxing entity regulations and methodology explanations related to assessed values.
