Assessed Value
Standard Definition
The valuation placed on a property by a public tax assessor for the purpose of calculating local annual property taxes.
Detailed Examination Analysis
Assessed Value is the dollar value assigned to a property for local tax calculations. It is determined by the local tax assessor's office and is typically calculated as a percentage (assessment ratio) of the property's fair market value. Real estate listing sites show both market values and assessed values, which can vary significantly depending on local assessment cycles.
Real-World Examination Scenario
"A county has an assessment ratio of 80%. A home with a fair market value of $250,000 has an assessed value of $200,000. The millage rate of 30 mills is then applied to the $200,000 assessed value, resulting in an annual property tax bill of $6,000."
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