Why is it important to assess property based on its current use value?

Assessing property based on its current use value is crucial because it ensures that the valuation reflects the actual use of the property in question. This approach aligns the property tax burden with the income-generating potential of the property, leading to a fairer tax system. When a property is assessed based on its current use, it accurately represents how the property is utilized in the marketplace, which can significantly differ from its potential value if it were used for a different purpose.

For instance, a piece of farmland that is valued at its highest and best use (such as commercial development) may present an unrealistic tax burden if assessed solely on that potential rather than its current agricultural use. This can discourage landowners from maintaining their properties, as the tax implications could exceed what they earn from their use. Therefore, assessing based on current use value promotes a fairer distribution of tax responsibilities and helps to stabilize the community's economic environment by not imposing undue financial pressure on property owners.