Which type of valuation is typically accepted for taxation purposes?

The type of valuation that is typically accepted for taxation purposes is assessed value. Assessed value refers to the value determined by a tax assessor for the purpose of calculating property taxes. This value is often a percentage of the market value and is used specifically to establish a basis for taxation.

Market value, while it is an important concept in real estate that reflects what a property would sell for in the open market, is not directly used for taxation. Taxation is primarily based on the assigned assessed value to ensure that properties are taxed in a fair and equitable manner according to predetermined assessment ratios.

Inherited value and liquidation value serve different purposes. Inherited value may be applied to estate tax calculations, but it generally does not relate to ongoing taxation. Liquidation value focuses on the minimum price obtainable from sale in a distressed scenario, which also does not apply to regular property taxation assessments.

Understanding the distinction between these values is key in the field of property valuation, especially when considering regulatory compliance and tax obligations.