How is the assessed value of a property typically established in relation to its fair market value?

The assessed value of a property is typically established as a percentage of its fair market value (FMV). This practice allows local governments to effectively tax properties by implementing a uniform assessment system. By using a percentage of FMV, assessors account for varying market conditions and property characteristics while ensuring that the tax base remains equitable.

This method of assessment helps maintain consistency across different properties within a jurisdiction, providing a fair basis for taxation. For instance, if a jurisdiction determines that properties should be assessed at 80% of their fair market value, it allows for a systematic approach that can adapt to fluctuations in the market without completely resetting values with every change.

In contrast, the other options suggest either exact equality, constant elevation, or independence from FMV, which do not align with standard assessment practices. The majority of local government assessments incorporate FMV as a reference point to ensure that taxation is fair and reflective of current market conditions.