What does "true cash value" refer to?

The term "true cash value" refers to the usual selling price of a property at the time of assessment. It is essentially an estimate of the market value of a property, reflecting what a willing buyer would pay to a willing seller in an open market transaction, assuming both parties have reasonable knowledge of the relevant facts. This value is typically determined based on recent sale prices of similar properties, adjusted for market conditions and the specific features of the subject property.

Understanding true cash value is crucial for assessing property taxes, as it provides a standard or benchmark against which properties can be evaluated. It is not dependent on final auction prices, profit margins, or post-improvement appraisals, which makes it distinct from those concepts. True cash value aims to represent a property's fair market value as of a specific date, which is pivotal for equitable taxation.