Please explain like I'm 5: price versus taxable value
I own a gym and want to expand- there is a local vacant warehouse up for sale/lease. I may pursue the leasing, but looking at purchasing the warehouse is another viable option. The warehouse asking prices if $350k, however this is the property summary: https://ascendweb.jacksongov.org/ascend/(3thpqx3dpxcu1445whl45s55)/search.aspx

Market Value: $156k, taxable value: $50k. 

How is the asking price so high?

Edit: This place needs a ton of work. :/ 
[{"id": "d42lfw4", "text": "While the assessment is worth taking a look at, it is not uncommon for assessors to be way off on the value of a property.  This is especially true in places that have limits on the assessment increases (http://www.jacksongov.org/152/Assessment-Notices).   In order to figure out if the owner's asking price is reasonable, you should compare it so sale prices of comparable buildings in the area.  It is easier to compare if you look at $/SF.  Don't trust the assessor's valuation.   ", "replies": [], "depth": 1}, {"id": "d42pxbv", "text": "Market value and tax value are based on the last sale of the property for computing real estate taxes, they are not indicators of actual value. Determine what you are willing to pay in rent and see if the mortgage payment including re tax and insurance is below the rental rate. ", "replies": [], "depth": 1}, {"id": "d43l4c0", "text": "Think of it this way: say you own a unique, rare car that you want to sell. The KBB book price states that the market value of the car (going by mileage and condition) is $5,000....but in reality similar cars are going for $20,000 (and people are paying that price because they are so hard to find). Naturally, you will make your asking price for the car around $20k.\n\n\nSo in this instance your county is suggesting that the property has a market value of $156,000 (they are not real estate professionals and typically have no idea what is going on in the market). Why is this $156k value important? Typically for two reasons: 1) the school districts use market values of residential properties in their districts for legislative/funding purposes and 2) the county needs to know how much to tax your property...\n\n\nThe county determines that the market value is $156k. But each county uses what is called a Common Level Ratio to determine how much of the property's value can be assessed for taxes. So a CLR of 1 would mean that the \"tax assessment value\" is the same as the market value. a CLR of .5 would mean that tax assessment value is half of the market value.\n\nLooks like your county has a CLR of .32 which is how they got to that $50k number. Now moving forward, the property is taxed by the County, Municipality, and School District it is located in based on that $50k. To make things more confusing, there is not a simple percentage tax rate that they use, but rather a \"Millage Rate\". 1 \"Mill\" is 1/1000th of 1 dollar. So if the county's millage rate is 1, the Owner has to pay the county $50 every year for real estate taxes.", "replies": [], "depth": 1}, {"id": "d43s5ab", "text": "Assessed value is different in each state, it's set by law. [In MO](http://www.moga.mo.gov/mostatutes/stathtml/13700001151.HTML), it is defined as:  \n&gt; Except as otherwise provided in subsection 3 of this section and section 137.078, the assessor shall annually assess all personal property at thirty-three and one-third percent of its true value in money as of January first of each calendar year. The assessor shall annually assess all real property, including any new construction and improvements to real property, and possessory interests in real property at the percent of its true value in money set in subsection 5 of this section.  \n\nThe market value can be a ballpark, but generally there is a disconnect between assessed/tax values and actual value. There are some states (CA, NY and FL I think) where the new assessed value will be set to the most recent sale price and adjusted from there. ", "replies": [], "depth": 1}]