Which type of value reflects the opinion of value assigned by a tax official?

The assessed value refers to the opinion of value assigned by a tax official, often for property tax purposes. This value is determined through a systematic appraisal process conducted by the local government or a designated assessing authority and is used to calculate property taxes. The assessed value can differ from the market value, which reflects the price that a property would likely fetch in an open market between a willing buyer and a willing seller.

Understanding the distinction between assessed value and other types of value, such as appraised value or fair market value, is crucial. While appraised value is generally determined by a licensed appraiser for various purposes, including sales and refinances, fair market value is more aligned with what an asset would sell for under normal market conditions. In summary, assessed value is specifically aimed at taxation, reflecting the government's opinion on how much a property is worth for the purposes of aggregating tax revenue.