What does Potential Gross Income represent in property assessment?

Potential Gross Income (PGI) refers to the total income a property could generate if it were fully rented at market rates, without any deductions for vacancies, collections losses, or operating expenses. This metric is crucial in property assessment as it provides an ideal scenario for assessing the income potential of a real estate asset.

The significance of considering PGI at 100% occupancy stems from the desire to gauge the maximum income potential based purely on prevailing market rental rates, thus offering a benchmark for both investors and appraisers. By evaluating PGI, stakeholders can analyze the property’s income-producing capability under optimal conditions, which is integral for determining its value, informing investment decisions, or understanding its financial viability.

The other choices reflect various aspects of income generation related to properties, but they do not accurately capture the concept of Potential Gross Income. Income from property tax revenues relates to municipal earnings and is not a reflection of the property's operational income. Income from property sales references capital gains from transactions rather than ongoing income generation. Lastly, income from other property-related services may include ancillary services but does not encompass the primary income derived from leasing the property.