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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Beginning in 1994, the criteria are tightened to 90 - 100 percent assessment ratios and 25 percent coefficients of dispersion.
Based on 1990-91 sales, the agricultural land assessment ratio was 67.6 percent and the non-agricultural ratio was 77.6 percent.
The range of assessment ratios for those states that apply different ratios to different property classes are reported in column 3 and the range of statutory tax rates for those states that tax different classes of property at different rates are reported in column 4.
Among the states that apply different assessment ratios, agricultural and residential properties are usually assessed at lower rates than other properties.
The Constitution of the State of Illinois permits counties with population in excess of 200,000 to adopt a classification system for local property taxation in which the assessment ratio can vary across classes of property by a factor no larger than 2.5.
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 Pennsylvania Supreme Court granted review to consider whether the Uniformity Cause permits the School District, pursuant to its statutory right to appeal individual property assessments, to concentrate solely on commercial properties while foregoing appeals as to single-family residences that may have even lower assessment ratios.
Since sales and assessment ratios are computed off sales, TownAnalyst.com is designed to allow users to adjust all sales to the taxable status date so the county's values and sales are comparable and the resulting ratios are statistically significant.
If a county has a statutory residential assessment ratio of .85, all towns within the county must be assessed at (or very close to) that ratio.
Turning to tax fairness, the estimates show that properties with higher assessment ratios are more likely to be delinquent.
where Delinquenti indicates whether the property owner is delinquent (yes = 1, no = 0), Pt is a vector of property characteristics (Homestead Exemption, Statutory Tax Rate, Taxable Value, Years Owned, Assessment Ratio (16), Detroit Owner (17), Size, and Delinquent on Water, and [X.sub.i] is a vector of variables that are excluded from the second-stage outcome equation, as presented below.
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