A real estate agent in Virginia is helping a client understand the difference between assessed value and appraised value. The client's home has a tax assessed value of $380,000 and a recent appraisal for mortgage purposes shows a value of $420,000. The agent correctly explains that in Virginia, the assessed value is used for which specific purpose?
Correct Answer
B) Calculating the local real property tax owed each year
In Virginia, the assessed value determined by the local commissioner of the revenue or assessor is used specifically to calculate the annual local real property tax. Under Va. Code § 58.1-3201, property is assessed at 100% of fair market value, and the tax rate (expressed per $100 of assessed value) is applied to this assessed value to determine the tax bill. The assessed value is a tax administration tool, not a market price or lending tool.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
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- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
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- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
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