The assessed value is the dollar value assigned to a property by a public tax assessor for the purpose of calculating property taxes. It is typically a percentage of the property’s market value, depending on local tax laws and regulations. The assessed value is used to determine how much the property owner will pay in property taxes each year.

To determine the assessed value, assessors consider various factors, including the property’s size, location, condition, and any improvements or upgrades made. They may also look at recent sales of similar properties in the area, zoning regulations, and the income potential of the property if it is rented out. This assessed value is often lower than the actual market value, which is the price a buyer might pay for the property in an open market, as some jurisdictions set the assessed value at a lower percentage to cushion against market fluctuations. Additionally, certain exemptions or reductions may apply, lowering the assessed value for eligible property owners, such as veterans, senior citizens, or those using the property as their primary residence.

Once the assessed value is determined, it is multiplied by the local tax rate, known as the mill rate, to calculate the annual property tax. These taxes fund essential local services, including schools, roads, and emergency services. Property owners are notified of their property’s assessed value each year and may have the option to appeal the assessment if they believe it does not accurately reflect the property’s value.

In summary, the assessed value is a key figure in the property tax process, reflecting the value of a property as determined by a public tax assessor. It plays a significant role in determining the amount of property taxes a property owner must pay, ultimately contributing to the funding of local government services and infrastructure.