Lack of Uniformity:
Properties are intended to be valued in an equal fashion per assessment metrics. Thus, they are intended to be assessed ‘uniformly’, by law. Determination of assessment equity is made by first calculating the ‘building assessment value per square foot’ of the subject property and then analyzing the same of its comparable properties. If there are a substantial amount of comparables with a lessor ‘building assessment value per square foot’, that serves as an indication of assessment inequity.
Sales Comparison:
What someone is willing to pay is the best indicator of market price. Thus, assessment values are intended to be in-step with the latest sales activity. There is a clause within the tax code that an assessor cannot ‘sales chase’. In other words, they may not increase a properties assessment to be in align with the most recent sales price that’s higher than the established assessment fair market value. However, there isn’t a regulation negating sales chasing downward. The determination of market equity is made by first calculating the ‘market value per square foot’ of the subject property and then analyzing the same of its comparable properties. If there are a substantial amount of comparables with a lessor ‘market value per square foot’, than that of the subject property it serves as an indication of market sales inequity.