What is the difference between assessed value and market value?

The difference between assessed value and market value is an important concept when it comes to property tax law in Virginia. Assessed value is the dollar amount that is used to calculate a property tax bill. It is determined by a set of procedures established by local governments. In Virginia, the assessed value is typically based on the current fair market value of the property. Market value, on the other hand, is the amount that a buyer and seller agree upon for a property. This amount can vary depending on the current availability of housing, the condition of the property, and the housing market in the area. Market value does not take into account any exemptions or deductions that may be applied to the assessed value in order to reduce the tax bill. In Virginia, the assessed value of the property will always be lower than the market value. This is because the assessed value takes into account only a portion of the market value, without taking into account any deductions or exemptions. The difference between the two values can be substantial, and can have a big impact on the amount of property tax that is owed.

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What is the difference between assessed value and market value?

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