2a. 2019 Report - Laserfiche WebLink

16 | Page Sales Ratio Explained The sales ratio study is conducted annually by the ND State Tax Commissioner’s Office to ensure that the local jurisdictions comply with setting appropriate property values. Every sale of property in Cass County is filed with the state indicating the adjusted sales price (house, lot, and special assessment balance) and the true and full value. If the prior year sales percentage is not within the tolerance range, which for 2019 is 90‐100% of the true and full value, then Cass County would need to increase the valuations to bring the overall values into compliance. Value adjustments for new construction or exemptions expiring are not considered in these increases. DEFINITIONS  Median Ratio: A measure of central tendency. Median is affected by the number of observations and is not distorted by the size of extreme ratios. The State Board of Equalization, when equalizing residential and commercial property assessments, uses this. Individual ratios of the sales are arranged in order of magnitude, and then the middle ratio in the series is the “Median Ratio”.  Price Related Differential: A measurement of the relationship between the ratios of high‐value and low‐value properties to determine if the value of property has any influence on the assessment ratio. If the PRD is 1.00, there is no bias in the assessment of high‐value properties in comparison to those for low‐value properties. If the PRD is greater than 1.00, then owners of lower‐value properties are paying a greater amount of tax relative to the owner of a high‐value property. Conversely, if the PRD is lower than 1.00, the opposite is true.  Coefficient of Dispersion: The most generally useful measure of variability is the coefficient of dispersion (COD). It measures the average percentage deviation of the ratios from the median ratio or how far from the median point, most of the property falls. The tighter the range the better and more equalized your property valuations are.