Merritt Research Services provides tax base data for credits within the City, County, and School District sectors. Tax base data is found in the Comprehensive Annual Financial Report (CAFR) in the Statistical Section, which typically provides an abundance of information relating to economics and demographics. When entities do not provide tax base data in their CAFR, Merritt will utilize public documents from other sources, including Official Statements and Continuing Disclosure Documents which may be obtained through Electronic Municipal Market Access (EMMA).
Tax base data provides an extensive overview of economics and demographics of the Credit, including, but not limited to, Tax Rate, Tax Levy, Top Ten Taxpayers, and Top Ten Employers, and Property Valuations. Merritt provides three types of Property Valuations in CreditScope: Full Market Value, Assessed Value, and Taxable Assessed Value, each defined below:
- Full Market Value reflects the current dollar value for which a parcel of property could sell in a competitive market. In addition, it is a feasible agreed-upon price between a willing seller and a willing and able buyer.
- Assessed Value is the valuation placed on a parcel of property by a Public Tax Assessor or Appraisal District. The Assessed Value in CreditScope includes all tax exemptions, such as the Homestead, Active Military, Veteran, Disability, and Senior Citizen exemptions, for example. Assessed valuation methodologies are based on a formula that varies on a state-by-state basis. These values frequently represent a specific statewide statutory percentage of the market value.
- Taxable Assessed Value is the Assessed Value excluding any applicable exemptions. The Taxable Assessed Value is the valuation which determines the amount of property taxes levied on a specific parcel of property.
It is important to note that each state has specific and unique calculations for each of the three types of Property Valuations provided within CreditScope. Merritt recognizes the important role that tax base data plays in credit analysis, and, therefore, makes every effort to ensure that these valuations are accurately depicted. While the Full Market Value is a better number to use when comparing ratios linked to debt loads across state lines, annual CAFRs don't always provide the latest Market values. In those instances where Merritt has not been able to access the number from the credit or other official sources, the field is generally left blank.