What does a low Price Related Differential (PRD) suggest?

A low Price Related Differential (PRD) indicates a potential regression in assessment policies. The PRD is a measure used to evaluate the equity of assessed values in relation to actual sale prices. When the PRD is low, it suggests that properties that sold for lower prices are assessed at a higher percentage of their market value compared to properties that sold for higher prices. This scenario points to an inequitable system where lower-priced properties may be unfairly over-assessed, while higher-priced properties are under-assessed. Such an imbalance is characteristic of regressive assessment policies, which can lead to the perception that those with less expensive properties are bearing a disproportionate share of the tax burden. This concept highlights the importance of maintaining equity in property assessments to ensure fairness in taxation.