What is calculated using the Page 8 formula?

The county equalization ratio for a newly approved revaluation is calculated using the formula found on Page 8. This ratio is essential for ensuring that property assessments reflect the true market values of properties within the county. During a revaluation, it is necessary to determine how well the newly assessed values align with actual sales prices, and the equalization ratio serves as a vital tool for this purpose. It provides a standardized measure to adjust individual assessments, helping to achieve equity in property taxation among homeowners and commercial property owners.

The significance of this calculation lies in its role in maintaining fairness in the property tax system, as it helps to identify discrepancies that may arise due to local market conditions or assessment practices. Accurate equalization ensures that all taxpayers contribute their fair share based on the true value of their properties, while inconsistencies can lead to disputes and inequities within the community.

Calculating the equalization ratio is a crucial step following a revaluation, as it ensures adherence to state regulations and guidelines aimed at promoting uniformity in assessments and supporting the overall integrity of the local taxation system.