In South Dakota, what is the term "assessed value" equivalent to?

The term "assessed value" in South Dakota is aligned with market value, which reflects the value determined by local assessment authorities for taxation purposes. Assessed value is essentially an estimation of value that considers what a property would likely sell for on the open market, factoring in various characteristics of the property, its location, and recent sales of comparable properties.

This relationship is significant in that assessed value is often used by municipalities to determine property tax obligations. By aligning assessed value with market value, it ensures that property taxes are levied fairly based on the property’s current worth in the real estate market.

Market value is the price a property would reasonably fetch in a competitive and open market, assuming both parties have reasonable knowledge of the relevant facts and are not under duress. By design, the assessed value should mirror this market value to provide a fair basis for property taxation and to maintain equity among property owners.

Thus, recognizing assessed value as equivalent to market value is crucial in understanding property appraisal and assessment processes within South Dakota. The other choices—loan amount, sales price, and appraisal value—represent different aspects of property valuation and financial transactions, but they do not directly align with the statutory definition and purpose of assessed value in the context of property taxation.