What does the Ratio Study estimate?

The Ratio Study estimates the percentage relationship between prior year's Real Market Value (RMV) and current RMV. This type of analysis is essential for property appraisers because it helps to compare the assessed values of properties to their market values, allowing appraisers to determine whether the assessments are fair and equitable. By analyzing past RMV data in relation to current RMV, appraisers can identify trends, assess the consistency of property valuations over time, and make informed decisions about adjustments needed for future assessments.

This concept is particularly relevant in understanding how property values may have changed due to market conditions, economic factors, or policy changes over the years. Accurate analysis derived from a Ratio Study can contribute to maintaining the integrity and fairness of taxation practices within a jurisdiction.