1. Margie Cusack Research Manager
International Association of assessing officers
314 W. 10th Street
Kansas City, Missouri 64105

2. Practical Application of IAAO Standards For Land Administration and Property Tax Systems
Margie Cusack

3. Why IAAO Standards are important for property valuation?
IAAO Standards have been developed to:
Guide assessment officials in the creation, implementation and advancement of efficient land and property tax administration systems

4. What is a standard?
A model accepted as correct by custom, consent, or authority
A criterion for measuring acceptability, quality, or accuracy

5. What is a standard? An agreed way of doing something
The distilled wisdom of an organization’s subject matter experts

6. Standard-setting Organization
A body that sets, describes, or documents uniform operating, technological, or other norms for participants in a particular field or industry.

7. Technical Standards Subcommittee
Alan Dornfest, AAS, Chair Property Tax Policy Bureau Chief Idaho State Tax Commission
Carol Neihardt Vision Government Solutions Eudora, Kansas
Bill Marchand Chief Deputy Assessor Norfolk, Virginia
Joshua Myers Josh Myers Valuation Solutions Chesapeake, Virginia
Wayne Forde Director of Shared Services Barbados Revenue Authority
Chris Bennett Director of Publications, IAAO Staff Liaison, Chicago, Illinois
August Dettbarn Appraiser Manager Douglas County, Kansas

8. Principles-based vs Rules-based
Norms expressed as guidelines
Principles-based Standards
How to- Implementation is left up to you
Prescribes implementation in detail
Rules-based Standards
Specific quality criteria or thresholds

9. Principles-based vs Rules-based
Principles-based Standards
Qualitative
What is required, has exceptions
Rules-based Standards
Quantitative
How to achieve an objective, no exceptions

10. Valuation Principles-based Example
“Sales data should be collected, verified, and adjusted as necessary for model calibration and ratio study purposes.”
Section 2 of Standard on Verification and Adjustment of Sales

11. Valuation Rules-based Example
9.1 Level of Appraisal
While the theoretically desired level of appraisal is 1.00, an acceptable level between and 1.10 is considered acceptable for any class of property
*IAAO Standard on Ratio Studies

12. Principles-based vs Rules-based
Younger standard setting organizations are typically principles-based
More mature standard-setting bodies will use a mixture of principles and rules

13. A IAAO Disclaimer
IAAO assessment standards represent a consensus in the assessing profession and have been adopted by the Executive Board of the International Association of Assessing Officers (IAAO). The objective of the IAAO standards is to provide a systematic means for assessing officers to improve and standardize the operation of their offices. IAAO standards are advisory in nature and the use of, or compliance with, such standards is voluntary. If any portion of these standards is found to be in conflict with national, state, or provincial laws, such laws shall govern. Requirements found in the Uniform Standards of Professional Appraisal Practice (USPAP) also have precedence over technical standards.

14. Nature of IAAO Standards
Professional consensus & best practices
Use is voluntary
Do not have the force of law
Cross both technical and policy lines
Hybrid – on spectrum between principles-based and rules-based

15. Why Should We Use Standards in Valuing?
Provide authoritative support
Facilitate strategic planning
Promote excellence in assessment administration
Promote public trust to facilitate success

16. Nature of IAAO Standards
The foundation of modern mass appraisal practice fair, uniform and equitable valuation
Mass appraisal and new technologies can be successfully implemented overtime – not all or nothing

17. IAAO Keys to the Industry
Attempt to cover everything on which assessing officers need guidance
Establish and maintain valuation information related to property tax
How to Value and Review Value
Tax policy, Management, Accountability
Fundamental principles- FAIR, UNIFORM and EQUITABLE

18. A little bit of History
Began standard-setting in 1937 with the publication of principles
Started calling them “standards” in the 1956 published report

19. IAAO History Minimum Assessment Standards document published in 1963
Principles-based
Qualitative

20. IAAO History Preeminent Standards - First Adopted
Assessment-Ratio Studies – 1980
Mass Appraisal of Real Property – 1984
Property Tax Policy – 1997
Automated Valuation Models

21. Response to Emerging Trends
IAAO tackles emerging issues
Standard on the Valuation of Property Affected By Environmental Contamination 1992
Automated Valuation Model Standard – 2003
Sales Verification and Adjustment

22. Standards Concentrating on Land and Property Tax System Development
Where do I start to build a system and then add additional data layers?
Digital Cadastral Maps and Parcel Identifiers
Manual Cadastral Maps and Parcel Identifiers

23. Digital Cadastral Maps and Parcel Identifiers
Starts from basic concepts to full system development
Covers all sorts of new imagery and desktop measurement tools
Improved ‘how to’ for the creation of effective land administration and parcel mapping systems

24. Parcel Information Mapping Application

25. How do I improve Valuation development?
Standards of:
Automated Valuation Models
Mass Appraisal of Real Property
Valuation of Personal Property
Verification and Adjustment of Sales
Valuation of Property Affected by Environmental Contamination

26. Standard on Mass Appraisal of Real Property
Section 1. Scope
Section 2. Introduction
Section 3. Collecting and Maintaining Property Data
Section 4. Valuation
Section 5. Model Testing, Quality Assurance, and Value Defense
Section 6. Managerial Considerations

27. Standard on Automated Valuation Models
Entire industry resource including references to other international standards
What are AVM’s?
A numerical model simulating an event or events
What for?
Used globally by large entities to determine value through a value estimate model

28. Advisory areas included in AVM Standard
Documentation of Model Performance
Quality Control of Data Used
Integration/Reference to USPAP
Product Limitations and Useful Life
Internationalization of the Standard

29. Valuation Evaluation and Review- how is it going?
Standards on:
Ratio Studies- ruled based review of assessment fairness, uniformity and equity.
Assessment Appeal –best practices in operational procedures and due process.
Oversight Agency Responsibilities –what should this unit be doing to improve valuation and assisting valuers.
Professional Development –IAAO can help!

30. Standard on Assessment Appeal
Section 3. Appeal System for Locally Assessed Property
Court System
State or Provincial Property Tax Tribunal
Local or Region Appeal Board
Informal review by local assessor

31. Valuation Administration Toolkit
Standards on:
Public Relations-create effective public communication
Property Tax Policy- enhance fair and equitable considerations
Professional Development-train your staff!
Contracting for Assessment Services-optimize external resources

32. Professional Development Standard
IAAO-we will teach you!
Professional Development Standard
Professional Training and Designations
Certified Assessment Evaluator (CAE)
Residential Evaluation Specialist (RES)
Mass Appraisal Specialist (MAS)
Assessment Administration Specialist (AAS)
Personal Property Specialist (PPS)
Cadastral Mapping Specialist (CMS)

33. Where to Start?

35. What is the Body of Knowledge?
BOK, a description of the expertise required to effectively work within the assessment profession.
The BOK describes the key areas of knowledge in which an assessment professional can establish skills.

36. Upcoming IAAO Body Of Knowledge
1. Working with the Legal Framework
2. Collecting and Maintaining Property Data
3. Developing and Managing Cadastral Data
4. Appraising Property 
5. Leading and Managing the Assessment Office
6. Managing Complaints and Appeals
7. Managing Public Relations and Communications
8. Oversight and Compliance Review

37. IAAO - Valuing the World

38. Timeline for Retirement
When do you plan to retire or leave the assessment industry?
Less than 2 years %
In 2-4 years %
In 5-9 years %
48% of the respondents are planning on retiring within the next 9 years!

39. International Association of Assessing Officers 2016
Assessment Industry Compensation Survey
Success!
Qualifications & Opportunity
Benefits
Base Salary

40. Questions or suggestions to: Margie Cusack cusack@iaao.org