Which of the following is an advantage of current market value as the basis for property tax?

Using current market value as the basis for property taxes has the advantage of being understandable and objective. When assessing property values based on current market conditions, it allows stakeholders—such as property owners, assessors, and tax authorities—to have a clear basis for valuation rooted in the reality of the real estate market. This transparency fosters trust in the taxation process, as property owners can see how their assessments are aligned with what similar properties are selling for in the market.

The objectivity comes from relying on verified sales data and market analyses, as opposed to more subjective measures that could vary significantly based on the appraiser's personal judgment or biased perspectives. This foundation in current market performance not only enhances clarity but also enables a level of accountability, as the valuation can be supported by documented evidence, thus making the taxation process more justifiable to all parties involved.

While higher tax revenue and equal taxation are important considerations, they may not be inherent advantages of using current market value, as these can depend on various external economic factors. Similarly, susceptibility to market fluctuations is a characteristic of market-based valuations rather than an advantage, as it can lead to volatility in assessed values over time.