What does "recapture" refer to in the context of tax assessment?

In the context of tax assessment, "recapture" specifically pertains to the concept of capturing or reclaiming the tax benefits associated with properties that have depreciated over time. When properties are classified as wasting assets, it means they are losing value, which can be due to physical wear and tear, obsolescence, or other factors that reduce their worth.

When a property generates lower income or has diminished market value, agencies may implement recapture provisions to adjust future assessments. This allows municipalities to reassess values to ensure they are not losing significant tax revenue due to the depreciation of these assets. By recognizing these situations, the tax assessment process can effectively "recapture" lost revenue by reflecting a property's true market value in the assessment.

In contrast, the other options don't align with the concept of recapture in tax assessment. Newly constructed properties would often be assessed with value increases rather than adjustments related to depreciation. Market value adjustments refer more broadly to shifts in property values based on market conditions, while tax relief measures typically involve provisions that lower taxes rather than recapturing them after depreciation.