Property Valuation System Reform: Assessing Change Processes and Performance

A great deal of research has focused on the development of a generalized method of design, reform, and evaluation of the success of the juridical cadastre which includes land tenure, property location and extent as well as the land ownership record. However, little research of comparable depth has been dedicated to the fiscal cadastre, which is the system of assessing and recording property value. Many property valuation systems are undergoing reform to make use of new technologies, but the processes of reform, as well as the resulting systems should be assessed in order to consolidate and sustain the change they bring about, as well as to provide feedback for further change.Usual mechanisms to evaluate property valuation systems are identified and critiqued. These focus mainly on property valuation efficiency and effectiveness and rely on quantitative data such as the coverage ratio, valuation ratio, tax ratio, and collection ratio (Kelly, 1999). These measures are limited to measuring the performance of the property valuation and the property tax derived therefrom. They are unable to assess the change process and other goals of change which should be considered in a holistic analysis of a system involving both material and social entities and relationships. Alternative methods to assess performance are investigated from a systems perspective. Such methods provide a holistic approach to performance measurement and are likely to yield sustainable change to the property valuation system.