Which of the following best describes assessed value?

Assessed value is effectively defined as the value assigned by a local government assessor for the purpose of taxation. This figure is crucial as it determines how much property tax a property owner will owe to the municipality. The assessment process typically takes into account various factors, including property characteristics, location, and current market conditions, but its primary function is to provide a standardized value upon which taxes are calculated.

The other options reflect different types of value that are relevant in various contexts but do not pertain to the assessed value specifically. For example, the expected market price if sold pertains to what a seller might realistically receive in an open market transaction, which is different from the valuation aimed at tax assessment. The insurance valuation of the property usually considers the cost to replace or repair the building rather than a tax-based valuation. Similarly, the average selling price of similar properties provides insight into the broader market trends but does not serve the specific purpose of tax assessment. Hence, option B is the most accurate definition in the context of assessed value.