On the Degree of Property Tax Assessment Inequity in Complex Tax Jurisdictions

. The extent of interest in the degree of inequity in property assessment is indicative of the importance of identifying determinants of assessment inequity. Previous attempts to identify such determinants were certainly incomplete. An additional variable is offered for the list that would be expected to explain statistically the degree of inequity in the distribution of property tax liabilities, in general, and to examine specifically the relationship between assessment, inequity and the degree of complexity for assessing Jurisdictions. The latter are often complex in the sense that individual properties, although subject to a set of two or more nominal tax rates on assessed values, are not subject to the same set of nominal tax rates. It is argued—to the extent that individual property tax liabilities are capitalized in sale prices for individual properties—that the greater the number of specific property tax rates on assessed value, the greater is the expected frequency of change in such specific property tax rates and, therefore, the higher the expected value of the measure of the degree of inequity.