What is the basis for real property tax in New York?

The basis for real property tax in New York is determined by the assessed value of the property, which is a value assigned by the local government to establish how much tax is owed. This assessed value is typically a percentage of the market value, but it is not the same as market value itself.

In the context of the other options, market value represents the price a property would likely sell for on the open market, influenced by factors such as demand, location, and comparable sales. Fair market value aims to reflect the price a buyer would be willing to pay, while a seller would be willing to accept under normal market conditions, considering all relevant information. Book value refers to the value of an asset according to its balance sheet account, which includes depreciation and other accounting considerations.

While the fair market value may relate to the assessed value, it is not directly used as the primary basis for calculating real property tax in New York. Instead, assessed value is the key figure that local governments use to determine the tax owed by property owners, making it the most accurate and relevant choice in the context of real property taxes.