Q: What Does Fair Market Value Mean?
A: It is the price that a given property or asset would fetch in the current marketplace, subject to the following conditions: 1. Prospective buyers and sellers are reasonably knowledgeable about the asset; they are behaving in their own best interests and are free of undue pressure to trade. 2. A reasonable time period is given for the transaction to be completed. Given these conditions, an asset’s fair market value should represent an accurate valuation or assessment of its worth.
Q: What is Equalized Assessed Valuation?
A: The assessed valuation multiplied by an adjustment factor computed by the State Department of Revenue for each type of property in a taxing district, designed to cause each type of property to have comparable value regardless of local assessment practices. The objective is to have equalized valuation reflect the fair market value of each piece of property. (Fair Market Value – see above.)
Keep an eye open for more Q & A’s about property assessments and information in future editions of the Sun Day.
