What is the assessed or taxable value used for in local treasury examinations?

The assessed or taxable value is primarily used for the computation of realty tax. This value represents the worth of the property as determined by local tax assessors and serves as the basis for calculating property taxes owed by the property owner. In the context of local treasury examinations, understanding how assessed values are calculated and applied is crucial for managing a municipality's revenues derived from property taxes.

The assessed value reflects a portion of the market value of a property and is used to ensure that taxes are fairly levied on property owners based on the value of their holdings. This function aligns with the objective of local governments to generate necessary funding for public services and infrastructure.

While property ownership is important, the assessed value itself does not directly determine who owns the property. Similarly, it does not estimate the current market value of real estate, which can fluctuate due to various external factors or conditions. The calculation of interest on loans is unrelated to assessed value and pertains instead to financial obligations and borrowing, further distinguishing the primary role of assessed value in tax computations.