Keywords
property appraisal uniformity, horizontal equity, multifamily valuation methods
Abstract
This paper analyzes the uniformity of the property appraisal outcome for multifamily apartment complexes in Phoenix, Arizona. Specifically, it investigates vertical and horizontal equity and equity across assessment methods. Apartment transactions and assessed valuations are examined over a fiveyear period (1998–2002). Once possible bias in model specification is accounted for, no evidence of vertical inequity in the sample is found. However, there is modest evidence of horizontal inequity: the results suggest that complex size and geographic location are more difficult for the assessor to value uniformly. There is also inequity between small and large properties, as represented by two different valuation methods. Thus, the findings indicate that the income approach is superior to the sales comparison approach for valuing multifamily properties for tax purposes.
Original Publication Citation
Cornia, G. and B. Slade, 2005, Property Taxation of Multi-family Housing: An Empirical Analysis of Vertical and Horizontal Equity, Journal of Real Estate Research, 27:1, pp. 17 – 46.
BYU ScholarsArchive Citation
Cornia, Gary C. and Slade, Barrett A., "Property Taxation of Multifamily Housing: An Empirical Analysis of Vertical and Horizontal Equity" (2005). Faculty Publications. 8918.
https://scholarsarchive.byu.edu/facpub/8918
Document Type
Peer-Reviewed Article
Publication Date
2005
Publisher
Journal of Real Estate Research
Language
English
College
Marriott School of Business
Department
Finance
Copyright Use Information
https://lib.byu.edu/about/copyright/