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Simple English definitions for legal terms
sales-assessment-ratio study
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A quick definition of sales-assessment-ratio study:
A sales-assessment-ratio study is a way to figure out how much a property is worth for tax purposes. This is done by comparing the assessed value (what the government thinks the property is worth) to the actual sales price of similar properties in the area. By doing this, we can see if the assessed value is too high or too low and adjust it accordingly.
A more thorough explanation:
A sales-assessment-ratio study is a way to determine the assessment level for taxable property in a certain area. This is done by comparing the assessed value of the property to the actual sales price of a sample of properties in the area. This helps to determine if the assessed values are above or below the sales prices.
Let's say there is a town that wants to determine the assessment level for all the homes in the area. They take a sample of 100 homes and compare the assessed value to the actual sales price. They find that the assessed value is, on average, 10% lower than the sales price. This means that the assessment level for all the homes in the area should be increased by 10% to be more accurate.
This study is important because it helps to ensure that property taxes are being assessed fairly and accurately. It also helps to prevent over or under taxation of certain properties.