In terms of property valuation, what does the Principle of Consistent Use mean?

The Principle of Consistent Use in property valuation asserts that a property should be valued based on its highest and best use, which typically refers to a single, most productive use that is legally permissible, physically possible, financially feasible, and maximally productive. This principle emphasizes that when valuing a property, assessors should consider its current use rather than a mix of potential uses or historical uses that may not accurately reflect its current market value. By focusing on a single use, the principle helps ensure that the property’s valuation is aligned with how it is actively utilized, thereby providing a more reliable estimate of its market value.

While other options might suggest that multiple uses or historical considerations could weigh into the valuation process, they diverge from the core idea of valuing property based on consistent and active use. This is important for maintaining fair assessments and ensuring that property taxes reflect the functional value of the property in its current state.