It is well established that revaluation and the use of current market value in principle as the underpinning for the property tax base will improve the equitable distribution of the property tax between taxpayers. Because the market place is dynamic and ever-changing, and the property tax is an annually recurring tax, it is necessary to establish an ongoing system of periodic revaluation to ensure that the relationships established in an initial appraisal are still accurate. All of this is justifiable from the standpoint of maximizing equity, assuming that equity is defined in terms of maintaining an accurate relationship between the tax and the market value of the underlying property. However, both initial establishment of appraised values and subsequent reappraisal are costly, time consuming endeavors. Depending on the type of property, the extent of the revaluation, and available resources, costs may vary from as little as a few dollars to more than $80 per parcel. In addition, taxpayers often fear that some aspect of tax amount stability and predictability that may have occurred without reappraisal may be lost with it. Also, depending on the underlying taxation system, taxpayers fear that reappraisal means higher taxable values and higher taxes. These factors have lead to a hodge podge of tax and reappraisal policies across the United States. In this paper, we will explore the connections between costs, equity, and taxpayer concerns regarding revaluation and the worsening prospects for successfully reconciling all of these issues in cases where revaluation has been infrequent. We will also attempt to outline features that should be contained within a model policy.
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