Question

What is assessed value example?.

Answer 1

So, for example, a house with a fair market value of $300,000 in an area that uses a 50% assessment ratio and a mill rate of 20 mills would have an annual property tax of $3,000 ($300,000 × 0.50 = $150,000; $150,000 × 0.02 = $3,000).

Answer 2

An assessed value is the value assigned to a property by a tax assessor for the purpose of calculating property taxes.

For example, let's say you own a house that is worth $300,000. The tax assessor in your area assigns an assessed value to your property of $250,000, which is 83% of the market value. This means that you will be taxed on the assessed value of $250,000, rather than the full market value of $300,000.

The assessed value is usually a percentage of the market value of the property, and this percentage varies depending on the location and the type of property. The assessed value is used to calculate property taxes, which are based on the tax rate set by the local government.