If a compliance plan is being implemented, what can the coefficient be greater than?

In the context of property assessments and compliance plans, the coefficient typically refers to a statistical measure used to determine the accuracy and fairness of property valuations. When a compliance plan is being implemented, it is important to assess how closely the assessed property values align with the market values.

A coefficient above 15% suggests a significant discrepancy between the assessed values and the actual market values. In New Jersey, the threshold for acceptable assessment accuracy is often set at 15%, meaning that if the coefficient exceeds this level, corrective measures—such as a compliance plan—may be necessary to address potential inequities in property taxation.

Thus, the correct understanding is that a compliance plan can be initiated when the coefficient exceeds 15%, indicating that the assessments may not be in accordance with the fair market value expectations. Having this threshold allows assessors to ensure that property evaluations are equitable and reflect true market conditions, ultimately helping to maintain public trust in the property tax system.