Measuring the Quality of Reappraisal Eric Dale Montana Department - - PowerPoint PPT Presentation

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Measuring the Quality of Reappraisal Eric Dale Montana Department - - PowerPoint PPT Presentation

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December 3, 2015 Measuring the Quality of Reappraisal Eric Dale Montana Department of Revenue Tax Policy and Research 406-444-7925 edale@mt.gov 1 1 December 3, 2015 Background Actual Sales 2 2 December 3, 2015 Background Property

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December 3, 2015

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Measuring the Quality of Reappraisal

Eric Dale Montana Department of Revenue Tax Policy and Research 406-444-7925 edale@mt.gov

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Background

Actual Sales

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Background

Property Attributes Sales Price Relationships

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Background

Property Attributes

  • Est. Value

Relationships

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Background

Quality Check

Ratio = 𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 𝑊𝐵𝑊𝑊𝐵 𝑇𝐵𝑊𝐵𝐵 𝑄𝐵𝐵𝑄𝐵

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Background

Quality Check

Centered Around 100%

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Background

Quality Check

Minimal Variation

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Experience in the 2015 Reappraisal

100 200 300 400 500 600 700 0.00-0.49 0.51-0.53 0.55-0.57 0.59-0.61 0.63-0.65 0.67-0.69 0.71-0.73 0.75-0.77 0.79-0.81 0.83-0.85 0.87-0.89 0.91-0.93 0.95-0.97 0.99-1.01 1.03-1.05 1.07-1.09 1.11-1.13 1.15-1.17 1.19-1.21 1.23-1.25 1.27-1.29 1.31-1.33 1.35-1.37 1.39-1.41 1.43-1.45 1.47-1.49 1.51-1.53 1.55-1.57 1.59-1.61 1.63-1.65 1.67-1.69 1.71-1.73 1.75-1.77 1.79-1.81 1.83-1.85 1.87-1.89 1.91-1.93 1.95-1.97 1.99-2.01 2.03-2.05 2.07-2.09 2.11-2.13 2.15-2.17 2.19-2.21 2.23-2.25 2.27-2.29 2.31-2.33 2.35-2.37 2.39-2.41 2.43-2.45 2.47-2.49 2.51+ # in Bracket Range of Bracket

Sales Ratio Frequency Distribution

2014 Sales Ratios 2008 Sales Ratios

Ratio=1

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Experience in the 2015 Reappraisal

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

Sales Price 2008 Reappraisal Value

  • ne to one

Least Squares

2008 Reappraisal Value Sales Price

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Experience in the 2015 Reappraisal

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

Sales Price 2014 Reappraisal Value

  • ne to one

Least Squares

2014 Reappraisal Value Sales Price

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NW SW NE SE

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Region 1

20 40 60 80 100 120 140 160 0.00-0.49 0.57-0.59 0.67-0.69 0.77-0.79 0.87-0.89 0.97-0.99 1.07-1.09 1.17-1.19 1.27-1.29 1.37-1.39 1.47-1.49 1.57-1.59 1.67-1.69 1.77-1.79 1.87-1.89 1.97-1.99 2.07-2.09 2.17-2.19 2.27-2.29 2.37-2.39 2.47-2.49 # in Bracket Range of Bracket 2014 Sales Ratios 2008 Sales Ratios

Ratio=1

Region 2

10 20 30 40 50 60 70 80 90 100 0.00-0.49 0.57-0.59 0.67-0.69 0.77-0.79 0.87-0.89 0.97-0.99 1.07-1.09 1.17-1.19 1.27-1.29 1.37-1.39 1.47-1.49 1.57-1.59 1.67-1.69 1.77-1.79 1.87-1.89 1.97-1.99 2.07-2.09 2.17-2.19 2.27-2.29 2.37-2.39 2.47-2.49 # in Bracket Range of Bracket 2014 Sales Ratios 2008 Sales Ratios

Ratio=1

Region 3

20 40 60 80 100 120 140 160 180 0.00-0.49 0.57-0.59 0.67-0.69 0.77-0.79 0.87-0.89 0.97-0.99 1.07-1.09 1.17-1.19 1.27-1.29 1.37-1.39 1.47-1.49 1.57-1.59 1.67-1.69 1.77-1.79 1.87-1.89 1.97-1.99 2.07-2.09 2.17-2.19 2.27-2.29 2.37-2.39 2.47-2.49 # in Bracket Range of Bracket 2014 Sales Ratios 2008 Sales Ratios

Ratio=1

Region 4

50 100 150 200 250 300 0.00-0.49 0.57-0.59 0.67-0.69 0.77-0.79 0.87-0.89 0.97-0.99 1.07-1.09 1.17-1.19 1.27-1.29 1.37-1.39 1.47-1.49 1.57-1.59 1.67-1.69 1.77-1.79 1.87-1.89 1.97-1.99 2.07-2.09 2.17-2.19 2.27-2.29 2.37-2.39 2.47-2.49 # in Bracket Range of Bracket 2014 Sales Ratios 2008 Sales Ratios

Ratio=1

North West North East South West South East

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Commercial Properties

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Commercial Properties

10 20 30 40 50 60 70 0.00-0.49 0.51-0.53 0.55-0.57 0.59-0.61 0.63-0.65 0.67-0.69 0.71-0.73 0.75-0.77 0.79-0.81 0.83-0.85 0.87-0.89 0.91-0.93 0.95-0.97 0.99-1.01 1.03-1.05 1.07-1.09 1.11-1.13 1.15-1.17 1.19-1.21 1.23-1.25 1.27-1.29 1.31-1.33 1.35-1.37 1.39-1.41 1.43-1.45 1.47-1.49 1.51-1.53 1.55-1.57 1.59-1.61 1.63-1.65 1.67-1.69 1.71-1.73 1.75-1.77 1.79-1.81 1.83-1.85 1.87-1.89 1.91-1.93 1.95-1.97 1.99-2.01 2.03-2.05 2.07-2.09 2.11-2.13 2.15-2.17 2.19-2.21 2.23-2.25 2.27-2.29 2.31-2.33 2.35-2.37 2.39-2.41 2.43-2.45 2.47-2.49 2.51+ # in Bracket Range of Bracket

Sales Ratio Frequency Distribution

2014 Sales Ratios 2008 Sales Ratios

Ratio=1

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Commercial Properties

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

Sales Price 2008 Reappraisal Value

  • ne to one

Least Squares

Sales Price 2008 Reappraisal Value

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December 3, 2015

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Commercial Properties

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

Sales Price 2014 Reappraisal Value

  • ne to one

Least Squares

2014 Reappraisal Value Sales Price

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NW SW NE SE

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New Old Measures of Appraisal Level

Upper Bound 100.67% 117.04%

Median Assessment Ratio 98.67% 113.31%

Lower Bound 96.67% 106.61% Upper Bound 103.07% 119.15%

Mean Assessment Ratio 100.42% 113.97%

Lower Bound 97.77% 108.79% Upper Bound 99.74% 109.12%

Weighted Mean Assessment Ratio 94.34% 102.58%

Lower Bound 88.95% 96.04%

Measure of Appraisal Uniformity Coefficient of Dispersion 12.0767 23.7408 Standard Deviation 0.1749 0.3511 Price Related Differential 1.0644 1.1110

Region 1 Sales Ratio Statistics New vs. Old

New Old Measures of Appraisal Level

Upper Bound 106.29% 94.77%

Median Assessment Ratio 103.71% 86.86%

Lower Bound 101.58% 81.33% Upper Bound 110.00% 97.24%

Mean Assessment Ratio 106.14% 91.43%

Lower Bound 102.28% 85.61% Upper Bound 103.45% 84.34%

Weighted Mean Assessment Ratio 98.89% 78.69%

Lower Bound 94.32% 73.05%

Measure of Appraisal Uniformity Coefficient of Dispersion 15.9892 30.7389 Standard Deviation 0.2260 0.3629 Price Related Differential 1.0734 1.1619

Region 2 Sales Ratio Statistics New vs. Old

New Old Measures of Appraisal Level

Upper Bound 99.09% 79.49%

Median Assessment Ratio 96.22% 75.89%

Lower Bound 93.71% 71.84% Upper Bound 98.43% 83.34%

Mean Assessment Ratio 95.90% 79.73%

Lower Bound 93.38% 76.12% Upper Bound 97.09% 82.40%

Weighted Mean Assessment Ratio 93.10% 77.03%

Lower Bound 89.11% 71.65%

Measure of Appraisal Uniformity Coefficient of Dispersion 15.8455 28.4273 Standard Deviation 0.1960 0.2892 Price Related Differential 1.0301 1.0352

Region 3 Sales Ratio Statistics New vs. Old

New Old Measures of Appraisal Level

Upper Bound 98.26% 103.09%

Median Assessment Ratio 95.97% 99.79%

Lower Bound 94.96% 96.50% Upper Bound 101.07% 107.55%

Mean Assessment Ratio 99.16% 104.15%

Lower Bound 97.26% 100.74% Upper Bound 98.99% 98.64%

Weighted Mean Assessment Ratio 95.99% 95.81%

Lower Bound 92.99% 92.99%

Measure of Appraisal Uniformity Coefficient of Dispersion 14.9517 25.8180 Standard Deviation 0.1927 0.3546 Price Related Differential 1.0331 1.0870

Region 4 Sales Ratio Statistics New vs. Old

North West North East South East South West

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Appraisal Method Income Vs Cost

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Questions