How is residential property appraised?

Residential and rural properties are appraised under a mass appraisal system that conforms to State Laws and Administrative Rules. Value based on market sales are established for each property, as well as a reduced Measure 50 (M50) value. That value, called the Maximum Assessed Value (MAV), is the 1995-96 tax year value less 10%. That value may not increase more than 3% each year. Residential and rural properties are appraised using a market related cost approach. Sales of properties within a given market area, or an area of similar properties, are compiled and analyzed to develop the data used to appraise all similar properties within that given area. Once these values are established, they are monitored yearly using sales that occur within these areas by comparing those sales prices to the Real Market Value (RMV). If the average property sales price is higher than the RMV, the properties in that area are adjusted to reflect the change in the market.