Legal Definitions - sales-assessment-ratio study

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.