What is the purpose of the State Board of Taxation's valuation guidelines?

The purpose of the State Board of Taxation's valuation guidelines is to provide municipalities with a framework to ensure consistency and fairness in property tax assessments. By guiding municipalities in tax rate setting, these guidelines help ensure that property values are assessed in a uniform manner across a given area. This ultimately supports the establishment of equitable tax rates based on accurate valuations, which is essential for maintaining public trust in the taxation system.

Proper valuation is crucial, as it affects how much each property owner pays and ensures that funding for local services—such as schools, roads, and public safety—is appropriately derived from property taxes. When municipalities follow these guidelines, they are better equipped to create tax rates that reflect the actual market conditions and values in their jurisdictions.