How is assessment tax typically calculated?

Assessment tax is typically calculated based on the property’s market value. This method involves determining the fair market value of a property, which is then used to compute the tax owed. The rationale behind using market value is that it reflects what the property would sell for in an open market, thereby ensuring that property tax is assessed fairly based on current economic conditions.

While factors such as square footage can influence market value, using square footage alone does not account for other vital factors like location, property condition, and improvements made. Similarly, calculating based on front footage or the number of units fails to provide a comprehensive assessment, as these elements are just part of the overall property picture and may not correspond directly to its market value. Thus, the approach of basing assessment tax on market value provides a more accurate and equitable method for taxation across various property types.