Assessment refers to the process of determining the value of an asset, for the purpose of taxation. This assessed value is used to calculate taxes owed by the owner. The goal of an assessment is to establish a fair market value or a standardized taxable value that reflects what the asset would likely sell for under normal conditions.
Assessments they take into account various factors. For example on a property they’d consider the property’s size, location, condition, improvements, and comparable sales in the area.