What Does Assessed Value Mean?
The assessed value of a property is its worth as determined for tax purposes.
Government representatives appraise and determine the assessed value of property, and the value they assign to it may be considerably lower than its fair market value.
Insuranceopedia Explains Assessed Value
Local governments deploy assessors to determine the assessed value of properties in order to collect taxes fairly. The physical conditions of the property and the value of similar properties in the area are taken into consideration as part of the assessment. The value also depends on statutory laws.
The assessments are open to challenge and individuals may call for a reassessment of property.