Final answer:
The assessed value of a property is typically based on its current market value, which is used by local governments to calculate property taxes, despite the existence of factors like construction costs and legislative changes.
Step-by-step explanation:
No matter where you reside, your property's assessed value is typically based on the current market value of the property. While other factors such as construction costs, legislative changes, and accrued depreciation can influence the property's assessed value, the market value tends to be the prevailing standard in property assessment. Local governments and assessors determine this value to calculate property taxes, which are essential for funding public services. The market value is used as it represents a more equitable basis for taxation, taking into account the economic health of an area, the property's conditions, and its overall desirability. Moreover, legal or constitutional limits could be applied, as in the case of Proposition 13 in California, which capped real estate taxes and limited reassessment options, highlighting the complexities of property tax systems.