ASSESSED VALUE Meaning and
Definition
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Assessed value refers to the monetary value assigned to a property or asset by a tax assessor for the purposes of taxation or valuation. It is an estimate of the property's worth and represents the basis on which property taxes are calculated. The assessed value is usually lower than the market value of the property.
The assessment process involves evaluating various factors, including the property's location, size, condition, improvements, and comparable sales in the area. Elected or appointed assessors are responsible for determining the assessed value within a jurisdiction and ensuring fairness in the taxation system.
Assessed value is essential for determining property tax liabilities as it directly influences the amount of tax an owner must pay. Property taxes are usually calculated by multiplying the assessed value by the mill rate, which is a tax rate expressed in mills per dollar of assessed value.
Assessed value is also used in property valuation for other purposes such as obtaining financing or selling the property. Buyers and lenders may consider both the assessed value and the market value to assess the property's financial viability and determine a fair price or loan amount.
It is important to note that assessed value may differ from the market value, which is the amount a buyer is willing to pay for a property in an open market. While the assessed value serves as a basis for taxation, the market value is influenced by supply and demand, economic conditions, and other factors. Assessed values are typically updated periodically, often annually, to maintain fairness and keep up with changing market conditions.
Etymology of ASSESSED VALUE
The etymology of the word "assessed" can be traced back to the Old French word "assesser", which means "to assess" or "to estimate". The Old French term derived from the Latin word "assidere", which combines "ad" meaning "to" and "sedere" meaning "to sit". This Latin root suggests the idea of sitting or being present to evaluate or make a decision.
As for the word "value", it stems from the Latin word "valere", meaning "to be strong" or "to be worth". It later evolved into the Old French term "value", indicating "worth" or "price".
Combining the two terms, the phrase "assessed value" emerged. It refers to the estimated worth or the evaluated value of something, typically used in the context of real estate or taxation assessments.
