What does the Principle of Consistent Use state regarding property valuation?

The Principle of Consistent Use emphasizes the importance of maintaining a single, coherent use for the entire property when determining its value. This principle ensures that the market value reflects the actual use of the property as a whole, rather than being skewed by multiple or inconsistent uses that could confuse the analysis. Valuing the property based on a single use helps maintain clarity and consistency in the appraisal process, making it easier for tax assessors and appraisers to arrive at an accurate value that is reflective of the market and regulatory framework.

When properties have varied uses, it can lead to complications in valuation, as one part of the property might significantly differ in value compared to another based on different uses. The standards set by this principle provide a foundation for equitable assessments, ensuring that property values are appraised under the same assumptions and principles, thus facilitating a fair assessment for tax purposes.

Other choices may suggest evaluating for the highest potential use or considering future development potential, which are important aspects of property appraisal but do not adhere strictly to the principle of consistent use. This principle centers on the idea that a cohesive strategy regarding property use leads to more reliable and uniform valuations.