It works because they just need to come up with a total value and how it divides between land and house doesn’t matter much. My property taxes also separate out

It works because they just need to come up with a total value and how it divides between land and house doesn’t matter much. My property taxes also separate out land and it puts the land at like 25% of the total value, but in reality someone would easily pay >50% for my land just to demolish the house and rebuild.