Which term describes when low-valued properties are over-appraised relative to high-valued properties?

Which term describes when low-valued properties are over-appraised relative to high-valued properties?

• A. Regressivity
• B. Skewness
• C. Kurtosis
• D. Homogeneity

Answer: (A)

Regressivity describes a situation where the tax burden falls more heavily on low-valued properties because those properties are over-appraised relative to their market values, while higher-valued properties are under-appraised. With a uniform tax rate, over-appraisal of inexpensive parcels means they pay more tax relative to their actual value, shifting the burden onto the lower end of the value spectrum. This mismatch between assessed value and market value across property values creates a regressive effect. Skewness would refer to an asymmetry in the distribution of values, kurtosis to how peaked or fat-tailed the distribution is, and homogeneity to how similar properties are to one another. None of these describe the relative over- or under-appraisal across the value spectrum, which is why the correct term is regressivity.

Regressivity describes a situation where the tax burden falls more heavily on low-valued properties because those properties are over-appraised relative to their market values, while higher-valued properties are under-appraised. With a uniform tax rate, over-appraisal of inexpensive parcels means they pay more tax relative to their actual value, shifting the burden onto the lower end of the value spectrum. This mismatch between assessed value and market value across property values creates a regressive effect.

Skewness would refer to an asymmetry in the distribution of values, kurtosis to how peaked or fat-tailed the distribution is, and homogeneity to how similar properties are to one another. None of these describe the relative over- or under-appraisal across the value spectrum, which is why the correct term is regressivity.