Any kind of "theoretical valuation for tax purposes" is just fundamentally going to be flawed. They're mixing one concept of value - market price - with an artificial concept they use to try and guess what the market price ought to be, but without any buyers or sellers involved. Valuing assets is a hard problem, it's why we have such a giant financial sector.
Yeah exactly. Wouldn't it be easier to make it self reported but use a mechanism to incentivize accurate market prices. Like enforce that the owner can't sell for more than x% the reported amount and rents are capped based on the reported amount. Use of the property as collateral has to match the reported value. You can only be insured for value up to that reported number. Lots of things the state can do to create that incentive.
