Fair Market Value
WiKi defines “Fair Markek Value” as: Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market. An estimate of fair market value may be founded either on precedent or extrapolation. Fair market value differs from the intrinsic value that an individual may place on the same asset based on their own preferences and circumstances.
1.1. STANDARD OF ASSESSMENT: All real property is assessed at its current full value. Guidance: The real property tax is an ad valorem tax, meaning it is imposed against the value of property. Real Property Tax Law (RPTL) §305(2) only provides that all parcels within an assessing unit are assessed at a uniform percentage of current value (Level of Assessment, or LOA). When the Level of Assessment is not at 100% of full value,the administration of the property tax becomes less transparent. In particular, an LOA of other than 100% of full value is much more difficult for property taxpayers to determine whether they are being assessed equitably. It also becomes much more difficult for the assessor to manage the valuation process. This full value standard goes beyond the statutory requirements of §305(2), as well as § 701(8)(b), which allows fractional assessment within classes of special assessing units, i.e.,New York City and Nassau County. In doing so, this standard provides the fundamental and prerequisite under pinning of a transparent and equitable assessment process. Assistance: Compliance with §305 is discussed in Valuation Standard 1.6. Valuation approaches are discussed in Valuation Standard 1.4.
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