Assessed Valuation

Dollar value assigned to property by a municipality for purposes of assessing taxes, which are based on the number of mills per dollar of assessed valuation. If a house is assessed at $100,000 and the tax rate is 50 mills, the tax is $5000. Assessed valuation is important not only to homeowners but also to investors in municipal bonds that are backed by property taxes.

The value of a property as determined by a municipality for real estate tax purposes; often this valuation is less than the true market value of the property.

The financial worth assigned to property by taxing authorities that is used as a basis or factor against which the tax rate is applied.

A prescribed amount of the value of each unit must be paid as taxes in the future. In most cases, the assessed value is not representative of the fair market value of the property.