What tax is based on an assessed value of property?

Property tax is determined through the assessed value of a property, which is a valuation made by a governmental authority to obtain a fair tax revenue from property owners. This assessed value typically reflects the market value of the property, adjusted for local conditions and specific tax regulations.

When assessing property for taxation, local assessors evaluate various factors, such as the physical characteristics of the property, recent sales of similar properties, and any renovations or improvements made to the property. Based on this valuation, a tax rate is applied, and the property tax is calculated accordingly.

The other tax types listed do not depend on an assessed value of property. Sales tax is a tax on sales of goods and services, income tax is based on an individual's earnings, and gift tax is levied on the transfer of property from one individual to another without receiving anything in return. Each of these taxes has its own basis for assessment that does not relate to property values.