In the face of a declining commercial tax base, driven primarily by remote work and rising vacancy rates, Sid's book, "Revolutionizing Property Tax Assessment," offers a comprehensive set of strategies to address the urgent challenges facing assessment departments in major metropolitan areas.
The book proposes a shift from annual to 3-year reassessments, with a valuation date set one year before the taxable status date, to ensure more accurate and timely market data. It also advocates for decentralized municipality-based assessment to better align with local market dynamics.
To enhance efficiency and accuracy, the book suggests a futuristic workforce plan that includes a mix of civil servants and external hires, including AI specialists and data scientists. It emphasizes the need for hiring STEM graduates to develop valuation modeling expertise, as well as the increased use of technology and AI in data collection, valuation modeling, and administrative tasks.
The book also recommends utilizing advanced AVMs for assessment, employing better risk-managed valuation techniques such as Random Forests, and conducting statistical validation of sales and financial data. To improve overall efficiency and effectiveness, it is suggested that top-school MBAs from the private sector be hired to lead assessment agencies.
By implementing these innovative strategies, assessment departments can better navigate the changing real estate market, stabilize the tax base, and ensure the equitable distribution of property tax burdens.
