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

The difference between value for tax purposes and market value in North Carolina eminent domain law is that market value reflects the true worth of a property, while value for tax purposes is usually a lower value that is used to calculate property taxes. Market value is determined by considering fair market prices for similar properties in the same area, factors such as current demand or opportunity for development, and other things that may contribute to the overall worth of the property. On the other hand, value for tax purposes is typically much lower than the market value and is often based on the assessed value that is calculated by the county or by a approved appraiser. This value is used to determine the amount of tax that the property owner needs to pay each year. To determine the assessed value, a number of factors are taken into account such as the age, condition, and size of the property. As a result, value for tax purposes can be much lower than the market value and is used simply for the purpose of calculating the annual property taxes.

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

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