Low dollar properties are over-appraised relative to high dollar properties. This is an example of poor _______ equity.

• A. Vertical
• B. Horizontal
• C. Capital
• D. Temporal

Answer: (A)

Vertical equity focuses on fairness across properties with different values—ensuring that tax burdens rise in proportion to property value. When low-dollar properties are over-appraised relative to high-dollar properties, the smaller-value properties end up paying a higher tax relative to their value than larger properties. That means the tax burden isn’t aligned with the property’s value, signaling poor vertical equity. Horizontal equity would concern fairness among similar properties, temporal equity about consistency over time, and capital equity isn’t the standard term used here.