What is meant by “subject property ratio” in assessment calculations?

The term "subject property ratio" refers to the relationship between the assessed value of a property and its true value, which is often considered its market value. By dividing the assessed value by the true value, you can obtain a ratio that indicates how closely the assessment reflects the market conditions and the property's actual worth.

This ratio is crucial in the context of property assessments, as it helps assessors ensure that properties are valued fairly and consistently in relation to one another, in alignment with state and local assessment standards. A ratio close to 1.0 suggests that the property's assessment is aligned with its true market value, while a significantly lower or higher ratio can indicate underassessment or overassessment, respectively.

In essence, understanding the subject property ratio allows for better evaluation in the overall assessment and helps ensure equitable taxation among property owners, making it an essential concept in property tax assessment.