Property Reassessment

Reassessment

May 13, 2009

Consultant: Assessors’ work fine

Independent appraisal of 21st Century’s reassessment work reveals ‘some pretty good results.’

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
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Luzerne County’s independent reassessment consultant has wrapped up a new study of the county’s assessments now that the values have gone through informal reviews and formal appeals.

International Association of Assessing Officers representative Bruce Sauter concluded that the values in all 76 municipalities fell within the association’s standards for measuring the “level of assessment,” which compares actual sales to the new values.

“What you have in general are some pretty good results. Overall, the new result cumulatively looks good and came within standards,” Sauter said Tuesday in between several meetings with county officials. “Considering the inequities that existed prior to revaluation, this is a vast improvement.”

He advised the county to monitor values in a few municipalities flagged in his reports.

“There are some pockets where obviously it can be improved upon, but I’m sure the assessment staff will try to work on that,” he said.

Sauter found that five of the 76 municipalities had an “exceptionally low” coefficient of dispersion, known as “COD” in assessment lingo. The COD measures the extent that individual assessments deviate from fair market values, with an acceptable standard of 5 percent to 15 percent.

The five flagged municipalities, along with their CODs, are: Courtdale, 4.94 percent; Fairview Township, 4.88 percent; Lehman Township, 4.95 percent; Ross Township, 4.47 percent; and Penn Lake Park, 3.62 percent.

Sauter said the low CODs indicate that reassessment company 21st Century Appraisals Inc. or county assessment appeals boards put “excessive focus on the sales prices,” with possible “sales chasing.” Sales chasing is basing values on a known sale, rather than multiple sales reflective of an entire neighborhood.

Three municipalities also failed the “coefficient of concentration test,” which is another indication of sales chasing, Sauter’s study says. This test measures the spread between the sales price and assessed values, and the percentage should be 32 percent or less, he said.

The ones that exceeded this mark: Fairview Township, 32.65 percent; Ross Township, 38.24 percent; and Slocum Township, 36 percent.

Sauter based his analysis on about 15,500 actual sales from a list supplied by 21st Century. A separate compilation of sales would have been too expensive because of the sorting required, he said. All sales were time-adjusted with a formula to Jan. 1, 2008 – the effective date of the reassessment, he said.

Minority Commissioner Stephen A. Urban, who met with Sauter on Tuesday, said he was pleased that Sauter gave the assessments an overall “A” grade.

“There’s a lot more equity and fairness in the system now that didn’t exist before the reassessment,” Urban said.

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