What is the primary purpose of a Ratio Study?

The primary purpose of a Ratio Study is to ensure equitable property valuations. This type of analysis is conducted to assess the degree to which assessed property values reflect market values across a given area. The study involves comparing the assessed values to actual sale prices of properties within a specified time frame.

By analyzing these ratios, appraisers can determine if certain property types or geographic areas are being assessed fairly. If discrepancies are found, adjustments can be made to improve overall equity in the assessment process, ensuring that similar properties are valued similarly. This is crucial for maintaining public trust in the property taxation system, as it ensures that all property owners contribute their fair share based on the true value of their property.

The other choices, while they may reflect aspects of property assessment or valuation, do not align with the primary intent of a Ratio Study. Establishing property lines relates more to surveying, verifying assessment methods pertains to internal procedure validation rather than market value assessment, and calculating potential market values is a different objective that does not focus specifically on equity among property valuations.