Which term is listed as a method of assessment?

• A. Reproduction
• B. Income
• C. Market Value
• D. Depreciation

Answer: (C)

The main idea here is how property is valued for taxation. Market value is the standard basis used in most assessments because it estimates the price property would bring in an open, competitive sale between a willing buyer and seller under typical conditions. This reflects current market conditions, recent comparable sales, and the property’s features, giving a fair basis for calculating taxes.

Reproduction value measures what it would cost to recreate the property exactly and is a cost-based approach rather than what the market would actually pay. Depreciation accounts for loss in value due to age or wear, which is a factor used in some valuations but not the primary method of general tax assessment. Income is a valuation approach used for income-producing properties to estimate value from expected earnings, but it’s not the standard basis for most assessments. Market value remains the most common method used for determining taxable value.