Which term means "a current market value placed on a property as the basis for municipal taxation"?

• A. Market Price
• B. Assessed Value
• C. Investment Value
• D. Tax Assessment Formulas

Answer: (B)

Assessed value is the value assigned by the municipal assessment authority to a property for tax purposes. It represents the current value used as the base to calculate property taxes—municipal taxes are applying the local tax rate to this value. While it’s related to market value, the assessed value is determined on a set assessment date using assessment rules and can differ from the price you’d actually pay in a sale. The market price describes what a property would sell for in the market, investment value is what a particular investor would require given their objectives, and tax assessment formulas are the methods used to compute taxes, not the value itself.