Journal of Property Tax Assessment & Administration


Automated valuation models (AVMs) have been demonstrated to help governments promote more equitable ad valorem property tax assessments at reduced costs and higher efficiencies than traditional appraisal methodologies. To learn whether and how AVMs are being used in the assessment process, the Lincoln Institute of Land Policy in partnership with the International Association of Assessing Officers (IAAO) conducted a survey in 2019. Responses from assessment offices using regression-based AVMs demonstrate their widespread benefits to the assessment process, including increased accuracy, uniformity, and equity at lower costs and higher efficiencies. The adoption of AVMs has been more common among larger jurisdictions and jurisdictions with more frequent valuation cycles. Still, with only 16% of respondents reporting regression-based AVM use, there remain many assessment offices that could benefit from implementing the method. The most common reason for not adopting AVMs is the belief that a current valuation approach works just as well, if not better. Additional challenges to AVM adoption include difficulty explaining results to taxpayers and staff and a lack of budget resources and technical expertise to implement and maintain the models. Greater familiarity with AVM technology will lead to more widespread use, ultimately resulting in greater efficiency and equity in property tax regimes.


Automated valuation model (AVM); Valuation approaches