What is the term for the value placed on a property by a governmental unit for tax purposes?

The term for the value assigned to a property by a governmental unit for tax purposes is "assessed value." This value is determined by local tax assessors and is used to calculate property taxes. The assessed value typically represents a percentage of the property's market value and may be adjusted to reflect various factors, such as zoning, location, and improvements made to the property.

Understanding assessed value is crucial because it directly impacts how much a property owner will pay in taxes. While market value reflects what a buyer might be willing to pay on the open market, the assessed value is specifically tailored for taxation purposes and may not reflect current market conditions.

In contrast, market value refers to the price a property would likely sell for in the current real estate market. Appraised value is an estimate provided by a licensed appraiser, often for mortgage purposes, and may differ from both market and assessed values. Taxable value typically refers to the value after exemptions or reductions, which further distinguishes it from assessed value.