If an owner purchased a property in 1999, should the assessed value be the same as the purchase price?
Not necessarily. The sale of real property is affected by many factors, such as a buyer’s desire to acquire a particular property and a seller’s willingness to reduce the sale price in order to achieve a sale. This could result in similar properties selling for different amounts, which would result in different taxes. OPAC establishes an assessed value which is in the middle range of selling prices for similar properties. This ensures that the tax burden is equitably shared among similar properties. Another reason the assessed value and price might not be the same is that the market may have changed between the valuation date of June 30, 1999 and the date the property was purchased.
Related Questions
- I am about to purchase a property at a price significantly below the assessed value. Will my property taxes be based on the new purchase price or on the assessed value?
- If an owner purchased a property in 1999, should the assessed value be the same as the purchase price?
- How should the current assessed value of a property affect the dollar figure in an offer to purchase?
