For what purpose is assessed value primarily used?

The assessed value is primarily utilized to calculate property taxes owed. In many jurisdictions, including Colorado, the local government assesses the value of property to determine the tax liability for property owners. This assessed value is usually a percentage of the property's market value and is established by the county assessor based on various factors, such as property characteristics, comparable sales, and market trends.

This assessment is crucial because it forms the basis of the property tax calculation. Local governments use the assessed values to generate revenue needed for public services, infrastructure, education, and other essential community functions. The process ensures that property taxes are distributed proportionately among property owners, reflecting the value of their respective properties.

While assessed value may indirectly relate to market trends or help inform real estate pricing, its primary and most critical function remains centered on the calculation of taxes due to local government entities.