What is the role of actual use of the property in assessment?

The role of the actual use of the property in assessment is pivotal as it guides property classification. Property classification is essential for proper assessment because different types of properties (residential, commercial, industrial, agricultural, etc.) have distinct characteristics, uses, and tax implications. When the actual use of a property is understood, it helps assessors categorize it accurately, which in turn affects the property tax rate applied. This classification process ensures that properties are assessed fairly and consistently, reflecting their true usage and value in the market.

A property that is used for commercial purposes, for example, may be assessed differently than one used solely for residential purposes, even if they are similar in other physical attributes. Understanding the actual use thus plays a crucial role in ensuring fair taxation and proper revenue generation for local governments.