No and yes…
3-15-2015: Is your state or local Governmental property taxing authority using using AVMs (software creating automated valuation models)? One problem cited in this article is that these computerized systems are notoriously inaccurate. So how are you challenging your property valuations from your taxing authority?
No, the appraisal value is an evaluative “feature-by-feature” comparison approach to evaluate relative market value normally for mortgage loan purposes or to determine a logical market value based on several “recent” similar real estate property sales.
Yes, a tax assessment value doesn’t have access to appraisal values (unless volunteered by homeowners) is backed into by the local taxing authority based on information at hand such as recent or past sales values. Since these taxing authorities also have access to recent real estate property sales as recorded in the local Real Estate records office at the local courthouse, they do know recent sale prices and determine if similar properties, the other homes like it are similarly valued.
The bottom line is that for the most part, taxing authorities are incorrect most of the time to come really close to your property’s value and that’;s mainly for one major reason alone – they don’t want you to challenge your assessed value on your property tax bill…that’s more work for them.
Be sure to look at my blog post of “Challenging your Property Tax Bill”.
Source: Correlation article