What is assessed value primarily used for?

Assessed value primarily serves the purpose of setting property taxes. This value is determined by the local government's assessment of a property's worth and is used as the basis for calculating the amount of property tax that the owner must pay. Property taxes are essential for generating revenue for local services, such as schools, infrastructure, and public safety. The assessed value may not reflect the current market value, as it is based on criteria determined by the municipality, including property characteristics and comparable sales data used during the assessment process.

While assessed values can indirectly influence other aspects of real estate, such as selling prices and loan amounts, their primary function is directly tied to taxation. Thus, they play a crucial role in local government funding rather than individual market transactions or financial calculations.