To ensure that all properties in the State are taxed in an equitable manner, in the numerous taxing jurisdictions, New York State's Office of Real Property Tax Services (ORPTS) compares market data to assessed valuations. The Assessor analyzes data as well, to determine when Assessments require updating through a Reassessment to reflect Market Values.
Equalization Rate (ER)
Total Assessed Value divided by Total Market Value equals the Equalization Rate.
Through statistical analysis, NYS ORPTS determines whether adjustments are necessary to the Equalization Rate. This rate is used to adjust tax rates between jurisdictions. For example, the various towns and cities within a county may assess at different Levels of Assessment. The Equalization Rates are used to adjust the Assessed Values to bring them to a uniform level for determining the county tax rates. The Equalization Rate is also used in calculating allocation of NYS funds such as State Aid for Education and the level of STAR Exemptions.
Residential Assessment Ratio (RAR)
Assessments of selected one, two or three family structures divided by Sales Prices
NYS calculates the RAR annually for use by the Assessor as a general measure of equity showing how residential Assessments compare to Market Values. A decreasing (RAR) indicates that Market Values are rising faster than Assessments.
Levels of Assessment (LOA)
Percentage of Full Value at which properties are Assessed
The Assessor determines at which percentage of Market Value properties are assessed. A LOA of 100% means the Assessed Value and Market Value are the same, with no adjustments necessary. NYS law requires that properties within an Assessment Jurisdiction have a uniform level of assessment – the LOA is the same for all property types and properties.
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