What does the term "assessed value" refer to?

The term "assessed value" refers specifically to the value assigned to a property for tax purposes. This value is determined by a tax assessor and is used as a basis for calculating property taxes. Essentially, the assessed value may differ from the market value or sale price of a property; it is intended to reflect a standard measure that can be uniformly applied across properties within a jurisdiction for taxation.

Unlike the sale price, which is the amount paid for the property during a transaction, or the market price of similar properties, which can fluctuate based on demand and conditions in the local real estate market, the assessed value is a static figure established typically once a year or during reassessment periods. Additionally, it does not include the total cost of property improvements, which may enhance the property's value but are not directly correlated with the assessed value used for taxation.