What is defined as "True Value" in property assessments?

"True Value" in property assessments refers to the price at a fair and bona fide sale on a specific date. This definition emphasizes that the value must reflect a legitimate transaction where the buyer and seller act without undue pressure, and the sale price is considered a fair representation of the property's worth in the market at that particular moment.

In property assessments, especially in New Jersey, establishing True Value is essential for determining the correct assessed value for taxation purposes. It provides a reliable metric that helps ensure fairness and accuracy in property tax calculations. This standard is crucial because it protects both the interests of property owners and the revenue needs of local governments.

The other options do not accurately capture the essence of True Value; simply using an average sale price ignores individual property variations and specific market conditions. The highest price offered does not account for whether that offer was for a legitimate transaction or if other conditions influenced it, leading to potentially inflated values. Finally, estimating value minus renovation costs fails to reflect the market dynamics, as it does not equate to actual sales outcomes.