Social and Geographic Inequities in the Residential Property Tax: A Review and Case Study—A Commentary

Abstract

Any review of assessment values produced by an assessment authority for taxation purposes must use appropriate statistical methods to ensure that the assessment-to-sale price ratio analysis produces reliable results. Failure to do so can lead the reviewer to draw incorrect conclusions concerning the quality of the assessment base. It is my contention that the review of assessments in Hamilton, Ontario, Canada, conducted by Harris and Lehman and published in Environment and Planning A [“Social and geographic inequities in the residential property tax: a review and case study” 33 (5) 881 – 900] produced inaccurate conclusions because of the methodologies used to analyze assessment results. In this paper I will attempt to point out some of the more common methodological errors that are made when analyzing assessed values and demonstrate methods that should be employed to produce results that are more reliable.