ASSESSED VALUATION Meaning and
Definition
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Assessed valuation refers to the determination of the monetary value of a property or asset, which is used for tax assessment purposes. It is the estimated worth of a property or asset that is established by local government authorities or tax assessors based on certain criteria and guidelines. The assessed valuation is utilized to calculate property taxes, as it determines the tax liability of the property owner.
The process of assessing a property's value involves considering various factors such as its current market value, location, condition, size, and improvements made to the property. Assessors may also take into account other factors like the income potential of the property or the cost to replace it.
Assessed valuation is typically expressed as a percentage of the property's total value, also known as the assessment ratio. The assessment ratio may vary across different jurisdictions, depending on local tax laws.
The assessed valuation is crucial for property owners, as it determines the amount of property tax they are obligated to pay. Additionally, the assessed valuation is used by local governments to distribute tax revenue and allocate resources for public services like schools, roads, and emergency services.
It is important to note that assessed valuation is different from market value, which represents the price a buyer is willing to pay for a property.
Etymology of ASSESSED VALUATION
The word "assessed" is derived from the Middle English term "assess(en)", which comes from the Old French word "assessier". This Old French term, in turn, is derived from the Latin word "assessus", meaning "to sit beside".
The term "valuation" is derived from the Latin word "valere", meaning "to be worth" or "to have value".
When combined, "assessed valuation" refers to the process of determining the worth or value of a property or assets for taxation purposes.
