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

The difference between value for tax purposes and market value is an important concept in eminent domain law in North Dakota. Value for tax purposes is typically the amount that would be assessed for a property for the purpose of taxation. This value is usually determined by local tax assessors based on the quality of the land, its use, and the local market trends. Market value, on the other hand, is the value of a property on the open market based on what a willing buyer would pay for it. While the two values can often be similar, there can be significant differences based on factors such as the local real estate market, the condition of the property, and the preferences of the buyer and seller. Market value will typically be higher than value for tax purposes because it incorporates a premium for the unique qualities of the property. In the context of eminent domain law, market value is more important because it represents the actual value of the property in the open market, while value for tax purposes may not reflect the true market value.

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

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