What does a Price Related Differential (PRD) of 1.13 indicate?

A Price Related Differential (PRD) is a measure used in the assessment of property values to indicate how assessments vary across different property classes. A PRD of 1.13 suggests that there is a bias in assessments in favor of lower-valued properties. This means that lower-valued properties are generally assessed at a higher percentage of their market value compared to higher-valued properties.

When the PRD is above 1, it indicates that lower-priced properties are being assessed more heavily relative to their market value, leading to the conclusion that the assessment system may disproportionately favor less expensive homes. This can result in higher effective tax rates for these properties when compared to their more expensive counterparts.

Understanding this measure is crucial for appraisers, as it helps identify any potential inequities in the property tax system, allowing for adjustments in assessment practices to ensure fair property taxation across different value tiers.