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

In South Carolina, eminent domain law governs the process in which the government takes private property for public use. Understanding and differentiating between the terms “value for tax purposes” and “market value” is essential for the success of the eminent domain process. Value for tax purposes is the worth of a property determined by local governments for taxation. This value is used as a baseline for taxing owners on the properties they own and is often much lower than the actual market value. This value is based on a combination of factors, such as the location of the property, the size of the property, the age of the property, and the types of improvements made to the property. Market value, on the other hand, is the price a property would hypothetically sell for on the open market. This value is determined by the local real estate market and takes into account current market trends and property values. It is typically much higher than the value for tax purposes, as it is more reflective of the actual market conditions. It is important to note that the value of the property for taxation purposes does not necessarily reflect its true market value. Therefore, when the government is filing for eminent domain, it is important to understand the difference between value for tax purposes and market value in order to ensure that the owner of the property is being fairly compensated for the taking of their property.

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

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