What standards are used by appraisal districts to estimate market value?

The correct answer is that appraisal districts use the Uniform Standards of Professional Appraisal Practice (USPAP) to estimate market value. USPAP provides a framework of standards that guides appraisers in their work, ensuring that property valuations are performed with integrity, transparency, and competency. It includes strict ethical guidelines and performance standards that are widely accepted in the appraisal industry.

USPAP is relevant to property tax assessments because it helps maintain a level of consistency and fairness in appraisals across different properties and jurisdictions. Appraisal districts rely on these standards to conduct appraisals that reflect an accurate market value, which is essential for equitable taxation.

While Financial Accounting Standards Board (FASB) and International Financial Reporting Standards (IFRS) pertain to financial reporting and accounting standards, they do not directly apply to property evaluation processes overseen by appraisal districts. Similarly, the Appraisal Standards Board (ASB) is associated with developing standards, but it is the USPAP that is adopted and used by appraisers in practice. Thus, USPAP is recognized as the authoritative guideline in the field of property appraisal, making it the correct choice for this question.