What does 'Value in Use' refer to?

'Value in Use' refers to the intrinsic value of an object, which reflects the value derived from the actual use of the asset rather than its potential sale price on the market. This concept is significant in assessing property because it recognizes that the unique qualities and specific situation of a property can contribute to its worth beyond mere market comparisons.

For example, a building might be more valuable to one user who has specific needs or intends to use it for a purpose that maximizes its utility, compared to its value based solely on comparable sales. This intrinsic value is determined by how well the property fulfills the needs of its user, potentially incorporating factors like productivity, utility, and the benefits provided to its owner or user over time.

These aspects make 'Value in Use' a critical consideration for tax assessors, as they help clients understand the specific value of a property based on its performance and usage rather than what it might be worth in a general market scenario.