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

Value for tax purposes and market value are two different concepts when discussing eminent domain law in Texas. Value for tax purposes is the value the government places on the property for taxation purposes; this is not necessarily the value of the property on the market. Market value is the amount someone would pay for the property if it was put on the open market. In other words, it is the amount someone would be willing to pay for the property if they were buying it in a normal, arm’s length transaction. In some cases, the value for tax purposes is close to the market value, but in other cases, there can be a large discrepancy. In Texas, market value is usually determined by a professional real estate appraiser, while value for tax purposes is typically based upon the amount the owner has paid in taxes in the past. This means that value for tax purposes is not always an accurate indication of market value. When the government wants to take private property for public use, it must pay the owner the fair market value of the property. Market value is usually determined by an expert appraisal, which takes into consideration a number of factors such as the current condition of the property, the age and size of the land, and the current market conditions. The owner must be compensated at least the full market value of the property in order to be considered fair. Value for tax purposes is not usually taken into consideration when determining the fair market value of the property.

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

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