If a property has an assessed value significantly lower than similar properties, how could it impact the PRD?

When a property has an assessed value significantly lower than similar properties, it can impact the Property Ratio Deviation (PRD) in a way that would likely lead to an increase in the PRD. The PRD is a measure used to assess the equity of property valuations within a jurisdiction. It compares the assessed values of properties to their market values, helping to identify potential discrepancies.

If one property is under-assessed compared to its peers, this implies that the overall assessment ratios in that area are skewed. When properties are assessed at lower values than comparable properties, the PRD will rise because the measure reflects the disparity in assessments. Essentially, a lower assessed value elevates the PRD, indicating a lack of uniformity in property assessments across similar properties.

In contrast, if the assessed values were consistent with the market values of similar properties, the PRD would likely be stable or show less variation. Therefore, under-assessment directly influences the PRD by highlighting the inequities present, leading to an increased PRD as more properties reflect disproportionate valuations. This demonstrates how crucial it is to ensure equitable assessments to maintain a balanced PRD.