Assessment Ratio
The Assessment Ratio is a measure used to evaluate how accurately property values are assessed for taxation purposes. It compares the assessed value of a property (the value set by tax officials) to its market value (the price it's likely to sell for). A ratio of 1.0 means properties are assessed at their market value. Ratios below 1.0 indicate under-assessment, while those above 1.0 suggest over-assessment. This ratio helps ensure fairness in property taxes, making sure that similar properties are taxed similarly based on their true market worth.
Additional Insights
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The assessment ratio is a metric used to evaluate the effectiveness of tax assessments in relation to property values. It compares the assessed value of a property (determined by tax authorities) to its market value (the price it would likely sell for). A ratio greater than 1 indicates properties are assessed above market value, while a ratio below 1 shows they are assessed below market value. This ratio helps ensure fairness in property taxation by revealing whether assessments are in line with actual market conditions, ultimately influencing how much tax property owners pay.
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The assessment ratio is a measure used to determine the value of a property for tax purposes. It compares the assessed value—what a tax authority determines a property is worth—to its market value, which is the price it would sell for. This ratio helps ensure that property taxes are applied fairly and consistently. A ratio of 1 (or 100%) means the assessed value equals the market value. If the ratio is lower than 1, the property is assessed at less than its market value, and if it's higher, the property is assessed at more than its market value.