What is assessed value?

The assessed value is defined as the monetary amount recorded on the assessment roll. This figure is determined by a local tax assessor and represents a portion of the property's fair market value. It plays a critical role in local property taxation since it is the basis upon which property taxes are levied.

Assessors use certain methodologies to establish this value, which can include analyzing comparable sales, replacement costs, or income approaches as applicable to the type of property being assessed. This value is essential in ensuring that property owners contribute their fair share toward local government revenues while also influencing property market dynamics within a community.

The other choices do not accurately reflect the concept of assessed value. For instance, the total market price of a property varies over time and is not fixed in the same way assessed values are for tax purposes. The estimated future value of a property represents speculation about market trends rather than a documented measure used in taxation. Lastly, while a minimum value may be relevant in certain contexts, assessed value itself is not bound by such a restriction; it can be set at various levels based on local assessments and regulations.