Assessment refers to the process of determining the value of an asset for taxation purposes.
The assessed value serves as the basis for calculating taxes owed by the asset’s owner.
The goal is to estimate a fair market or agreed taxable value that reflects what the asset would likely sell for under typical market conditions. Assessments take into account several factors, such as the asset’s size, location, age, condition, improvements made, and the recent sale prices of similar properties in the area.
Local governments and tax authorities use these assessments to ensure a consistent and equitable distribution of the tax burden among owners.