What typically dictates the assessed value of a property?

The assessed value of a property is typically determined by the tax authority's evaluation, which is primarily conducted for taxation purposes. This value is essential for establishing how much property tax the owner will owe. The tax authority employs various methods to evaluate properties, often using standardized assessment techniques that take into account factors such as property size, location, improvements, and market trends.

While a licensed appraiser's opinion can influence property value, especially in sales or financing, the official assessed value is governed by the tax authority's systematic process rather than a subjective appraisal. Similarly, the buyer's perception of market value or the highest offer received on the property may reflect the market dynamics at a given time but are not used to set the assessed value for tax calculations. The tax authority's evaluation is what establishes a consistent and equitable framework for property taxation within the jurisdiction.