What does the Sales Ratio compare in property assessment?

The Sales Ratio is an important metric in property assessment as it compares a property’s assessed value to its actual market price. This ratio is utilized to evaluate the fairness and accuracy of property assessments, ensuring that properties are taxed fairly based on their current market value.

When the assessed value is significantly higher or lower than the market price, it may indicate that the assessments are not reflecting real market conditions, which can lead to disputes and inequities in property taxation. By understanding the Sales Ratio, assessors can adjust assessments to more closely align with market realities, helping to achieve uniformity and fairness in property taxation throughout a municipality.

Understanding this relationship is crucial for assessors because it can aid in identifying areas where assessments may need adjustment and also help in ensuring that property tax burdens are distributed equitably among property owners.