Monday, April 13, 2015

How would Homeowners know if their Town is Fairly-assessed. Town Analyst Elucidates.

                                               (ONE Click on the Image to Enlarge)

Sales Ratio (County Market Value to Adjusted Sales) is a better indicator of the proper assessment level than the Assessment Ratio (County Assessed Value to Adjusted Sales), as the latter often includes Town-wise special assessments, abatements, exemptions, etc. 

All sales therefore must be adjusted to the taxable status date (in this case 01-01-2015) so the two values are comparable and the resulting ratios are statistically significant. 

In this example, since the Countywide Median Sales Ratio is .87, all Towns in that County must be valued close to this ratio so that the Assessment Roll becomes fair and equitable. Better yet, compare the 25th to 75th percentile of the ratio curve. If the sales are individually validated for ratio eligibility (ours are not), a much wider range – say, 5th to 95th - could be considered.

This Town shows not only a perfect Median Ratio of .87, but the 25th and 75th are in line as well, making it a fairly-assessed Town in that County.

In fact, save the aforesaid two slightly over and under-assessed Towns, this County has done an excellent job in producing a fair and equitable tax roll.

While this is the Town-wise summary of ratios, in a separate Blog post we will further drill down to the areas in the Town - spatially - where the incidence of over/under-assessment could be more severe than their counterparts. 

This analysis is extracted from Homequant's "Town Analyst" portal. Although this analysis is currently live for one county only (Seminole, FL - on our homepage), we will incorporate them for all of the markets we cover, perhaps within a month.

Meanwhile, please visit the Town Analyst site. It's completely free and requires no registration whatsoever.

Disclaimer: This analysis is strictly illustrative. Any commercial or legal use of it is totally forbidden. Always consult a Tax Attorney on statutory requirements.  

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