What does a high Coefficient of Dispersion (COD) indicate?

A high Coefficient of Dispersion (COD) signifies a low uniformity in property assessments. The COD is a measure of the variation in assessment ratios relative to the median assessment ratio. When the COD is high, it indicates that there is considerable disparity among the assessed values of similar properties, meaning that some properties may be significantly over or under-assessed compared to others.

This lack of uniformity can point to inconsistencies in the valuation process or differing market conditions affecting property assessments. In contrast, a low COD would suggest greater uniformity, indicating that properties are assessed more consistently relative to their market values. Thus, a high COD serves as a warning sign that the assessment practices may need to be reviewed and adjusted to ensure fairness and equity in property taxation.