What is the result of a PRD greater than 1?

A Price Ratio Differential (PRD) that is greater than 1 signifies that the properties with lower values are being assessed at a proportionately lower ratio than those with higher values. This situation indicates progressivity in the property assessment system. In essence, when the PRD exceeds 1, it suggests that more expensive properties are being assessed more accurately relative to their true market values compared to less expensive properties.

This kind of outcome often reflects a situation where the assessment system is favoring higher-valued properties while placing a heavier burden on lower-valued properties, leading to a more equitable distribution of tax obligations as it implies that lower-valued properties may be undervalued in comparison to higher-valued ones. This is vital for appraisers and policymakers to understand, as it shapes how assessments can influence tax equity and distribution across different property types.