What is the difference between the assessed value and the actual value?

The difference between the assessed value and the actual value of property in New Mexico is the amount of money the property owner must pay in taxes. The assessed value is the amount of money a government assessor decides the property is worth. This amount is typically lower than the actual market value. The actual value is the real market value for the property, which is usually determined by the comparable sales in the area. For example, if a home in New Mexico has an assessed value of $100,000 but the actual market value is $150,000, the homeowner is only taxed on the assessed value. The tax is typically calculated as a percentage of the assessed value. Thus, in this case, the homeowner would pay taxes on $100,000 instead of $150,000. Assessors use the assessed value to ensure taxes are fair and equal. By setting the assessed value lower than the actual market value, assessors can ensure that all homeowners in the area are paying the same amount in taxes, regardless of the property’s value. This helps to keep the tax burden equitable.

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What is the difference between the assessed value and the actual value?

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