Assessments made by estimating the value based on actual sales data from similar properties. But the value of those real sales are made based on the expected pr

Assessments made by estimating the value based on actual sales data from similar properties. But the value of those real sales are made based on the expected profitability of the land. It may be easier to see in rural areas. As a farmer, the price of farmland in the current climate seems to move to where the net profit on the productive use of that land is expected to be ~2-3% of the land's current value. So, as a rule of thumb, if you can expect to make $20-30,000 per year off 100 acres, then that 100 acres will sell for ~$1M. If the tax on profits is 100%, the expected income will always be zero. Thus, the land is worth nothing. It doesn't really matter if it is in the heart of a city, or out in the middle of nowhere.