What is the difference between assessed value and taxable value?
ANS: The Assessed Value of a property is 50% of the estimated “true cash value” that a property potentially will sell for in the open market without any special conditions. The Taxable Value is used for the calculation of property taxes. The millages voted in by local taxpayers are spread over the Taxable Value to determine a tax obligation by the taxpayer. Taxes are used to pay for services and schools within the local and county area. For the specific calculations, you should discuss this with your local Assessor or Treasurer.
Taxable value (TV) is the value used to compute your tax bill and applies to real property only. “TV” is determined yearly as the LESSER of assessed value (market based as determined by assessor) and capped value. Capped value is the prior year’s taxable value, less taxable value of losses, “capped” by an increase of the lesser of 5% or the rate of inflation, plus assessed value of additions. Taxable value becomes uncapped when property is sold or transferred.
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?
- How can I get general assessing information such as: taxpayer of record, parcel number, assessed value, taxable value and legal description?
- What is Taxable Assessed Value?
