Final answer:
Property assessment is the process by which a legal valuation is placed on taxable property, conducted by a local assessor to determine its fair market value before applying a property tax levy.
Step-by-step explanation:
The process by which a legal valuation is placed on taxable property is called C) Property assessment. This is undertaken by a local government official, often known as a local assessor, who determines the property's fair market value. Afterward, a property tax levy is applied based on the assessed value. Municipalities rely on property tax revenues, and these values can fluctuate depending on the economic health, quality of school districts, and overall desirability of an area. This system has been a part of taxation dating back to medieval times, as seen with the llibres d'estimes, and continues to play a significant role in the finances of local governments today.