When examining assessment performance, which ratio is the most critical?

The Coefficient of Dispersion is the most critical ratio when examining assessment performance because it provides a measure of the uniformity or consistency of property assessments across a jurisdiction. It quantifies the variability in assessment ratios, helping to assess whether properties are being evaluated fairly relative to one another.

A low Coefficient of Dispersion indicates that the assessments are closely clustered around the median, reflecting a high level of uniformity and fairness in the assessment process. Conversely, a high coefficient may suggest significant disparities in how properties are assessed, which can lead to inequities in taxation or other implications.

While other ratios, such as the Total Assessment Ratio, Aggregate Ratio, and Mean Assessment Ratio, offer important insights into overall assessment levels and trends, they do not provide the same level of detail concerning consistency and uniformity across individual property assessments. Therefore, the Coefficient of Dispersion stands out as a critical metric for appraisers aiming to ensure equitable treatment of all properties in the assessment process.