What is the basis for calculating the assessed value of a property?

The assessed value of a property is primarily determined by a local tax assessor, who evaluates factors such as property characteristics, location, and comparable sales data to establish a valuation that reflects the property’s worth for tax purposes. This assessment is conducted to ensure that property taxes are levied fairly and uniformly within a jurisdiction.

The role of the assessor is critical because they operate based on established methods and guidelines, which may vary by locality, to arrive at a fair assessed value that reflects the market conditions without being directly influenced by the fluctuations in market demand or income generated from the property.

The other options, while relevant to understanding property value and investment potential, do not directly determine assessed value. Market demand can influence property prices but isn't the basis for assessment. Expenses in property management affect net operating income and overall investment returns but do not play a role in assessment. Income generated from the property could indicate its potential value but does not form the basis for the assessed value as set by the local tax authority. Thus, the involvement of the local tax assessor is essential and authoritative in establishing the assessed value for tax purposes.