What is horizontal inequity in property assessment?

Horizontal inequity in property assessment refers specifically to the differences in appraisal levels that arise from non-value based criteria among similar properties. When properties that are comparable in terms of their characteristics and market value are assessed or appraised at different rates due to factors unrelated to their actual value—such as the owner's demographics, the property location within a particular area, or specific exemptions and incentives—this leads to horizontal inequity.

For example, if two similar homes in a neighborhood have different assessed values because one homeowner qualified for a specific tax exemption while the other did not, this creates inequity among properties that should otherwise be valued similarly. This concept underscores the importance of fair and equitable assessment practices to ensure that all property owners are treated uniformly.

The other choices highlight various aspects of property assessment but do not specifically address the essence of horizontal inequity as it relates to appraisal levels contingent upon non-value-based criteria. High assessment levels across all properties typically concern the overall taxes collected rather than inequity. Differences based on property size or inconsistencies in valuations may also affect fairness, but they do not uniquely define horizontal inequity, which is focused on comparable properties facing differing treatment unrelated to value.