Assessment Ratio

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Assessment Ratio

A ratio of a property's assessed valuation to its market value. An assessed valuation is the value of a property as determined by an appraisal conducted by a municipality. The market value is the price for which one can sell a property on the open market. For example, if the assessed valuation of a piece of real estate is $180,000 and its market value is $200,000, its assessment ratio is 0.90, or 90%. The assessment ratio is used to determine one's property tax liability.
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In other words, an assessment roll must be fair and equitable and as such requires all towns therein to closely follow the statutory ratios set forth by the county legislature or any other governing body in charge of setting assessment ratios.
Since sales and assessment ratios are computed off sales, TownAnalyst.
Results From Means Tests Applied to Detect Significance of Discounts Based on Estimates of Value Obtained From Mean Assessment Ratios [*] Full Sample Broward County Auction price $59,653 $63,170 ($20,821) ($18,062) Predicted market value from mean assessment ratios by region $72,562 $78,046 ($23,562) ($22,582) Auction price discount relative to predicted market value from mean assessment ratios by region 17.
To address these concerns, we obtained predicted market value from assessed value for each property, i, by dividing that property's assessed value by the mean assessment ratio for recently sold properties from each geographic area of our sample.
E(AR) = mean county assessment ratio calculated using transaction prices and assessed values for a control sample of single-family homes that sold within the month prior to the auction in the same county as property i.
The coefficient of dispersion is the standard statistical measure of "variation in assessment ratios.
Beginning in 1994, the criteria are tightened to 90 - 100 percent assessment ratios and 25 percent coefficients of dispersion.
The effective tax rate is the product of the nominal tax rate and the assessment ratio.
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