What is the primary purpose of calculating the Coefficient of Dispersion?

The primary purpose of calculating the Coefficient of Dispersion is to measure the uniformity and quality of assessments. This statistical tool helps assessors understand how consistently property values are assessed compared to market values. A low Coefficient of Dispersion indicates that assessments are relatively consistent and equitable, while a high coefficient suggests that there may be significant disparities in assessed values across different properties. This measurement is vital for ensuring that assessments are fair and equitable, which is essential in property taxation and for maintaining public trust in the assessment process. Uniformity in assessments helps ensure that similar properties are treated the same in terms of their market value, contributing to a fairer taxation system.