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

Value for tax purposes and market value are two distinct terms related to the use of eminent domain in Nebraska. Value for tax purposes refers to the estimated value of a property for taxation purposes, while market value refers to the amount of money that a buyer is willing to pay for a property. The difference between these two values is usually quite large. The value for tax purposes is typically much lower than the market value, as it is calculated by the Commonwealth of Nebraska. This value is estimated based on factors such as the size of the property, the condition of the property, and the age of the property. This value is often then multiplied by a certain mill rate to come up with the actual property tax. On the other hand, market value is determined by buyers in the real estate market. This value is often much higher than the value for tax purposes, as buyers will generally pay more when they find a property they like. The market value is determined by the amount of money a buyer is willing to pay for a property. Buyers will typically take into account factors such as location, amenities, and market conditions when determining market value. In summary, value for tax purposes and market value have different meanings. Value for tax purposes is the estimated value of a property for taxation purposes, while market value is the amount of money that a buyer is willing to pay for a property. It is not uncommon for the market value of a property to be significantly higher than its value for tax purposes.

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

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