Thursday, April 13, 2017

How would Homeowners Know if their Town is Over-assessed. Town Analyst Explains

County Sales Ratio
                                         Over-assessed Town
(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 assessment, abatement, exemption, etc. 

All sales therefore must be adjusted to the taxable status date so the two values are comparable and the resulting ratios are statistically significant. 

In this example, since the Countywide Median Sales Ratio is .77, 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 however shows significantly higher Sales Ratios across the 25th-to-75th percentile curve, making it an over-assessed Town in that County.

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-assessment could be more severe than their counterparts. 

Please visit the Town Analyst site to analyze your County and Town. It's completely free and requires no registration whatsoever.

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

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