What is the difference between value for tax purposes and market value?

The difference between value for tax purposes and market value is that value for tax purposes is the amount calculated for tax assessments, while market value is the price that a property owner and a potential buyer are likely to agree to in an open market. In California, the Tax Assessor is responsible for assigning value to a property for tax purposes. This value is typically lower than what the property might actually be worth. Market value is assessed by the real estate sector where potential buyers and sellers determine the worth of a property. It is the opinion of the buyer and seller of what the fair market value of the property should be. An appraiser, who is qualified to assess the true worth of a property, can give an opinion of the market value by looking at a number of factors, such as: the condition of the property, location, size and age of the property. In California, when it comes to eminent domain, when a government entity is taking a property through eminent domain, it must pay the fair market value of the property. The property’s value for tax purposes may be less than its market value, in which case the property owner can usually receive a higher amount for the property’s market value.

Related FAQs

What is the difference between value for tax purposes and market value?
What is condemnation?
Are there any restrictions on the use of eminent domain power?
What is the difference between a public use and economic development?
What is a developmental impact fee?
Can I receive payment for relocation costs?
What is the difference between condemnation and a regulatory taking?
Can I prevent my property from being taken?
Can I receive compensation for the time spent on my property?
How can I challenge the public use of the property taken through eminent domain?

What is the difference between value for tax purposes and market value?

Related FAQs

Related Blog Posts