Which term describes the process that involves reporting property at its fair market value?

The process that involves reporting property at its fair market value is best described as the return of property in assessment. This term refers to the formal declaration or submission of property information to the appropriate authorities, where the value of the property is assessed in relation to its fair market value.

Fair market value is defined as the price that a property would sell for on the open market, given a buyer and seller are both informed and willing to engage in the transaction. Therefore, when assessing property for tax or assessment purposes, reporting this value accurately is essential.

While the other choices consider aspects of property assessment and value, they do not specifically pertain to the formal reporting of property at fair market value in the context of assessment. For example, current use assessment typically relates to valuing a property based on its present use rather than its highest and best use, which may not reflect fair market value. Financial appraisal involves evaluating the financial aspects of an investment but may not focus solely on fair market value reporting. Property valuation adjustment suggests correcting or modifying the value but does not encapsulate the complete process of returning assessed values for properties.