Because real property values in general have been lowered over the last 2 years throughout the state, it has become more common for recording fees to be based upon tax assessed values rather than the actual contract price. Local clerks have the option to base their fees on the higher of the two by current law.
While this practice may in and of itself pose a problem for some, it can cause far more extensive problems.
First of all, the recording stamp on a deed is the only place therein where an indication of a property's consideration may appear. Essentially, the grantor's tax paid tells the reader the amount on which it was based. It may reflect a grantor's tax based upon assessed value, however, an appraiser needing a comparable for an appraisal will not know that and proceed with an incorrect idea of the sales price for that property. That price will, of course, be a higher price. It will affect the accuracy of his report. If several such comparables are included therein it will inaccurately influence the lender's decision on a loan.
The clerks office may publish a list of the monthly transfers and report on each property's consideration. If its assesseed value was the basis for the "consideration" paid for a property rather than its actual sales price, all readers will be mislead as to the actual price paid for that property's. It will influence what neighbors, for instance, may believe their property is worth.
The local newspaper will acquire that list and publish the sales records, including the incorrect consideration, for the public to view.
The disbursal of inaccurate and potentially damaging information proliferates.
All of this comes on the heals of assessed values that probably reflect the significant increases in value experiencec during the period prior to the reassessment. We hope the assessors didn't get carried away as the difference between what is made public and reality will be even greater.
While the difference between the two values may vary fro one market to another, I've seen differences between actual prices paid and assessed values of more than $100,000.00 in my local market.
This bill will hopefully prevent this practice from occuring in the future but may not be able to undo whatever damage may have already been accomplished.

That was all hugely valuable, Joseph -- thanks so much for providing that excellent background.