What is meant by Progressivity in property assessments?

Progressivity in property assessments refers to a system where the tax burden increases with the value of the property. This concept is based on the principle that those who own more valuable properties should contribute a higher share of tax revenues. Higher valued properties face higher tax rates, which helps to ensure that property taxes are equitable and reflect the ability to pay.

This means that as property values increase, the tax rate applied to those properties also increases; thereby, the tax obligation grows progressively with the value of the property. This setup aims to alleviate the financial burden on lower-valued properties, allowing them to be assessed at a lower rate to promote fairness in the taxation system. This creates a balanced approach, often seen as a way to support equitable funding for local public services without disproportionately impacting those with less wealth.

Understanding this principle is crucial for appraisers, as it informs how assessments are conducted and how tax policies are structured within different jurisdictions.