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Info Tech’s Statistical Consulting Division Helps Win Favorable Opinion for West Virginia

GAINESVILLE, Fla. – April 16, 2004: In the matter of CSX Transportation, Inc., Plaintiff, v. The Board of Public Works of the State of West Virginia, et al., Defendants, Info Tech was hired by the State of West Virginia to provide statistical analyses of the Board's assessment of utility property tax for tax year 2000. In his April 8, 2004 opinion, Judge Joseph R. Goodwin of the United States District Court for the Southern District of West Virginia found Dr. James T. McClave's methodology superior to that presented by the plaintiff's statistical expert.

Quoting Judge Goodwin's opinion:

"The court finds Dr. McClave's view of sales chasing to be the most helpful. According to Dr. McClave, 'from a statistician's point of view [sales chasing] means a greater probability that a sold property will be changed either positively or negatively in its assessment than an unsold property.' Tr. Vol. 1, pp. 130-31. This seems to cut directly to the core issue in this case."

"CSXT bears the burden of proving by a preponderance of the evidence that the statistical methodology propounded by its expert, Dr. Richards, is both analytically sound and more accurate than Dr. McClave's methodology. Having carefully reviewed the evidence submitted by both parties, the court concludes that CSXT failed to meet this burden."

"...given that the only information we have is the number of reversions necessary to equalize the number of changes in assessment between the two populations, the most objective and statistically sound method of selecting properties for reversion is random selection. The Board's expert, Dr. McClave, determined the number of reversions necessary using a Chi-square test and then randomly selected the properties to revert...The results he obtained were tightly "clustered" or "robust," demonstrating the accuracy of his work. In short, the Board's ratio is based on sound principles of statistics and the proper use of random samples."

"Therefore, the court FINDS that the statistical methodology used by Dr. McClave to fix the ratio of assessment to true market value for commercial and industrial property in West Virginia for tax year 2000 is superior to the methodology employed by Dr. Richards."

"The court, therefore, adopts Dr. McClave's methodology and FINDS that public service corporation property must be ingested into the sales ratio study by the parcel."

"The court FINDS that the level of assessment of non-railroad commercial and industrial property in West Virginia was properly calculated by the Board's expert, Dr. McClave, as being 56.1% for the tax year 2000."

Since the late 1970s, Info Tech's Consulting Division has been a pioneer in the development of computerized techniques for detecting collusive behavior in sealed-bid markets. Info Tech's Systems Division supplies, develops, enhances and maintains software for customers across the country in the transportation construction industry. The company is headquartered in Gainesville, Fla. And can be reached at (352) 381-4400 or on the web at www.infotechfl.com.

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Valerie Riley, APR
Info Tech, Inc.
(352) 381-4400
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