The common level range is calculated based on what percentage of the average ratio?

The common level range is determined by a percentage that reflects the average ratio of assessed property values compared to true market values. In New Jersey, this percentage is typically set at 15%. The common level range is used to ensure uniformity and fairness in property assessments across different municipalities.

Using a 15% range allows assessors to account for variations in market conditions and assessment practices among different municipalities, thus providing a more equitable assessment process. This standard helps in adjusting property values to align them more closely with the market, ultimately affecting property tax calculations.

Knowing this percentage is crucial for assessors when they are looking to maintain fairness and accuracy in property taxation. Different percentages would suggest a varied approach to how wide or narrow the common level range should be, potentially leading to inconsistencies in property taxation.