Under what circumstances might property be over-assessed?

Property may be over-assessed primarily when the actual market conditions or the impacts of depreciation are not accurately reflected in the assessment process. When assessors use outdated or incorrect data to determine the value of property, it can lead to a valuation that does not match what the property would realistically sell for in the current market.

For instance, if a property has significantly depreciated due to physical wear, economic downturns, or changes in neighborhood desirability, and these factors are not considered in the assessment, the property could be assessed at a value that is higher than its fair market value. This discrepancy can result in property owners paying more in taxes than they should based on the actual worth of their property.

Understanding the basis for valuation is crucial in the assessment process. If assessments rely too heavily on historical data without adjusting for current market dynamics or accurately recognizing the effects of depreciation, this can lead to significant misvaluations. Accurate assessments should reflect the current economic conditions and any depreciation factors affecting the property's value.