The coefficient of dispersion should be less than what value for all non-residential properties?

The coefficient of dispersion (COD) is a statistical measure used in the appraisal field to gauge the accuracy of property assessments by evaluating the uniformity of assessment ratios in a set of properties. A lower COD indicates a more consistent and reliable assessment process.

For non-residential properties, a COD of less than 0.20 is generally a standard benchmark. This threshold signifies that the assessments are relatively uniform, suggesting that they align closely with the true market values of the properties. Maintaining a COD below this level is considered important for ensuring fairness and equity in taxation as well as avoiding significant discrepancies that could lead to inequitable treatment of property owners.

The other values provided (0.10, 0.15, and 0.25) represent thresholds that are either too stringent or too lenient. A COD lower than 0.20 ensures that the assessments are adequately accurate without being excessively difficult to achieve, as a COD below 0.10 may be impractical for some areas due to variability in market conditions. Consequently, the standard target for non-residential properties is indeed a COD of less than 0.20 to sustain an acceptable level of assessment accuracy and equity.