What is the definition of "assessed value"?

Assessed value refers specifically to the dollar value assigned to a property by an assessor for the purpose of calculating property taxes. This value is determined based on various factors, including the property's characteristics, location, and the recent sale prices of comparable properties in the area.

This definition is key in understanding property taxation, as municipalities rely on assessed values to determine how much tax each property owner should pay. While assessed value can be influenced by market conditions, it is not synonymous with market value, which represents the price that a property would likely fetch on the open market.

Additionally, the potential value of a sold property or the cost of municipal services takes into account different considerations unrelated to the specific valuation assigned for taxation.