What is the purpose of the Price Related Differential 'Bias Test'?

The Price Related Differential (PRD) Bias Test is specifically designed to identify systematic bias in property assessment. This test examines the relationship between property values and their assessed values, aiming to uncover whether properties of different values are being assessed consistently. A bias in assessment can occur when higher-value properties are assessed at a lower ratio compared to lower-value properties, or vice versa. By evaluating these ratios through the PRD, assessors can determine if there is an inequity in how properties are valued for taxation purposes. A PRD value close to 1 indicates a fair and equitable assessment, while deviations from this can signal potential bias that needs addressing to ensure fairness in property taxation.

The other options do not align with the primary function of the PRD Bias Test. For instance, while average property values and market trends may pertain to property assessment and taxation, they do not specifically address the systematic analysis of bias that the PRD is aimed at uncovering. Additionally, calculating future property tax income focuses on projections rather than current assessment fairness.