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

The actual use of the property plays a crucial role in the assessment process, particularly in guiding property classification. Different types of properties are assessed based on their current utilization, which affects their valuation for tax purposes. For example, a property used for residential purposes will be classified differently than one used for commercial activities. This classification is essential for ensuring that properties are assessed in a manner consistent with their intended use, which helps local governments apply appropriate tax rates and regulations.

Recognizing the actual use of a property ensures that assessments reflect its market value accurately and that various properties contribute equitably to the municipality's tax base. This practice also facilitates informed decision-making regarding zoning and land use policies, which can impact urban planning and development.

Other factors, such as property location and sale price, may influence overall transaction values but do not directly inform the classification necessary for assessment. The assertion that actual use has no impact is incorrect, as it is essential for establishing how properties are categorized in the assessment process.