What is the difference between Assessed Value and Estimated Fair Market Value?
The assessed value is the value placed on each parcel of real property by the local assessor. Assessed values are used to distribute a municipality’s tax burden among the individual property owners. Assessed values do not change annually unless changes have been made to a property (new garage, room additions, substantial remodeling of a kitchen or bath, adding central air conditioning or a fireplace, extensive remodeling) that affect its market value. Assessed values create equity among individual taxpayers within a municipality after a revaluation is conducted. The estimated fair market value (equalized value) serves two purposes. First, it is an estimate of what your home would sell for as of January 1st of a given year. This value changes yearly to reflect changes in the real estate market. Second, it is a uniform value that is used to apportion county property taxes, public school taxes, vocational school taxes, and to distribute property tax relief. Equalized values are used not o
Related Questions
- When I received my "Change of Assessment" notice, it had the Fair Market Value, the Taxable Value, and the Gross Assessed Value. What do these different values mean?
- What is the difference between Assessed Value and Estimated Fair Market Value?
- What if the Fair Market Value (FMV) is less than the Assessed Market Value (AMV)?
