What term refers to the value assigned to a property by a governmental unit for tax purposes?

The term that refers to the value assigned to a property by a governmental unit for tax purposes is "assessed value." This value is determined through a process established by local governments to equitably distribute the tax burden among property owners. The assessed value is typically a percentage of the market value, allowing for a standardized way to assess properties for taxation, which can vary from one jurisdiction to another.

Understanding the assessed value is crucial because it plays a significant role in calculating property taxes that homeowners and businesses are obligated to pay. It is not the same as market value, which reflects the price a property would likely sell for in an open market, or appraised value, which is determined through a professional evaluation of the property. Fair value is also a different concept that might come into play in certain accounting or investment contexts, but it does not apply directly to property tax assessment. Thus, assessed value is the correct term in the context of property taxation.