Assessed value refers to the determined value of a property for tax purposes, as assessed by a government authority or a professional assessor. This value is used as the basis for calculating property taxes, which are levied by local governments. The assessed value is distinct from the market value, which represents the probable selling price of the property in an open market.

Key points about assessed value:

1. **Property Tax Calculation:** The assessed value of a property is a crucial factor in the calculation of property taxes. Local tax authorities use this value to determine the amount of property tax owed by the property owner.

2. **Assessment Process:** Assessments are typically conducted by local government assessors or assessment agencies. They evaluate various factors such as the property’s size, location, age, condition, and any improvements made to it.

3. **Frequency of Assessment:** The frequency of property assessments can vary by jurisdiction. In some places, assessments are conducted annually, while in others, they may occur less frequently.

4. **Assessment Ratio:** The assessed value is often a percentage of the property’s market value. This percentage, known as the assessment ratio, can vary by locality. For example, if the assessment ratio is 80%, the assessed value would be 80% of the property’s market value.

5. **Tax Rate:** Once the assessed value is determined, it is multiplied by the local property tax rate to calculate the annual property tax. The tax rate is set by local governments and may vary based on factors such as school district funding, municipal services, and other local needs.

6. **Challenges and Appeals:** Property owners have the right to challenge or appeal their property’s assessed value if they believe it is inaccurate or unfair. The appeal process typically involves providing evidence or documentation to support a different valuation.

7. **Exemptions and Deductions:** Some jurisdictions offer property tax exemptions or deductions for certain types of properties or property owners. These may include exemptions for homesteads, agricultural properties, or senior citizens.

8. **Not Necessarily Market Value:** It’s important to note that the assessed value is not always equivalent to the property’s current market value. Market conditions, changes in property values, and other factors may cause a disparity between assessed and market values.

Understanding the assessed value of a property is crucial for property owners to anticipate and budget for property taxes. It is also a factor that potential buyers may consider when assessing the overall cost of homeownership.