What does a higher Coefficient of Deviation (COD) indicate about assessment uniformity?

A higher Coefficient of Deviation (COD) indicates greater variability in property assessments compared to the actual market value, which suggests that the assessments may not be uniform across properties. When the COD is elevated, it points to inconsistencies in how properties are assessed, meaning some properties may be overvalued while others are undervalued. This lack of uniformity typically signals the need for reassessment to ensure that all properties are valued more equitably in line with their market values.

In the context of assessment practices, maintaining uniformity is crucial for fairness and accuracy, and a high COD can reveal significant discrepancies that could lead to legal challenges or issues with taxpayers. Therefore, a higher COD serves as an indicator prompting assessors to review and possibly revise assessments to achieve a more consistent valuation across the municipality.

Other options do not accurately reflect the implications of a higher COD. Improved assessment uniformity would be indicated by a lower COD, while an average level of assessment accuracy and compliance with state standards would require uniformity in the assessments, again typically indicated by a lower COD.