What constitutional standard is used to value personal property?

The correct standard used to value personal property is true value. This concept encompasses the fair market value of the property, which is essentially the price that a willing buyer would pay to a willing seller in an open and competitive market, assuming both parties are knowledgeable and neither is under any compulsion to buy or sell.

Using true value as the standard is important because it ensures that the assessment reflects the actual worth of the property in the marketplace, which aligns with the principles of uniformity and equity in property taxation. It provides a basis for assessing personal property fairly in relation to other similar properties, promoting fairness in the tax system.

Other valuation methods, such as replacement cost, focus on the expense it would take to replace the property rather than its market value. Market value itself is closely related but does not always capture the nuances required in certain legal contexts. Book value reflects the accounting value of the asset and might not accurately represent the asset's current market worth, especially considering depreciation and changes in demand. Thus, true value is the most appropriate standard for ensuring fair taxation of personal property.