Assessed valuation is the process by which a government unit evaluates the value of real or personal property for tax purposes. This assessment determines how much property tax an owner will owe based on the assessed value of their property. The assessed valuation is typically lower than the market value, reflecting the government's approach to taxation.
Assessed valuation is primarily used in property tax law. It plays a crucial role in determining the tax obligations of property owners. This term is relevant in various legal areas, including:
Individuals can manage their property tax assessments using legal templates available through resources like US Legal Forms, which provide guidance on how to navigate the assessment process.
Here are a couple of examples of abatement:
Example 1: A homeowner receives a notice that their property's assessed valuation has increased by 15 percent compared to the previous year. As a result, the local tax authority must adjust the tax rate to ensure the total tax revenue remains consistent.
Example 2: A business owner finds that their commercial property's assessed value has been lowered due to a decline in the local real estate market, resulting in reduced property taxes owed. (hypothetical example)
One significant statute regarding assessed valuation is § 137.073 R.S.Mo., which mandates that if the assessed valuation of property increases by 10 percent or more after tax rates have been set, the local taxing authorities must revise the tax rates to maintain the same tax revenue as before.
| State | Assessment Ratio | Notes |
|---|---|---|
| California | 100% | Assessed value based on purchase price, with limited increases. |
| Texas | 100% | Property is assessed at market value; no state income tax. |
| Florida | 100% | Assessment caps for homestead properties to limit increases. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Market Value | The price a property would sell for on the open market. | Assessed valuation is often lower than market value and is used for tax purposes. |
| Appraised Value | The value determined by a professional appraiser. | Appraised value may be used for financing, while assessed valuation is used for taxation. |
If you receive a notice about your property's assessed valuation, review the information carefully. If you believe the assessment is incorrect, you can:
For assistance, explore US Legal Forms' templates to help you navigate the appeals process effectively.
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Assessed value is used for tax purposes and is often lower than market value, which is the price a property would sell for in an open market.