Equalization Ratio

The Equalization Ratio is a measure used to assess how fairly properties are assessed for tax purposes. It compares a property's assessed value to its market value. A ratio of 1 (or 100%) indicates an accurate assessment, while a ratio above or below suggests over- or under-assessment, respectively. This helps ensure that property taxes are distributed fairly among property owners. Authorities use the Equalization Ratio to adjust assessments, making sure that the tax burden is consistent across similar properties, promoting equity in the taxation process.