The difference in tax value and market value

[Clayton Crawford]

I would like to get feedback regarding the difference between tax value and market value. 

examples of why sometimes tax value is higher or lower?

can it change back and fourth? why? when?

can we use that to determine/predict local market?

Any information would be great!

thanks.

[Bob Razler]

Hello @Clayton Crawford :

Many states/municipalities use a multiplier or millage to calculate taxes.  It has its uses but it also lets them increase/decrease the taxes without reassessing all the properties.  You just raise the multiplier and taxes go up.

While the assessed value can have some relation to your property value, it's not uncommon in some area's where it is not accurate.

Bob