PUT AN END TO UNFAIR PROPERTY ASSESSMENTS,
WHICH CAUSE WIDESPREAD
OVER-TAXATION OF BLACK AMERICANS' HOMES

In an exhaustive study analyzing 118 million homes, researchers from Indiana University and the University of California, Berkeley  found "widespread racial inequalities in the U.S. property tax burden."  The study found a "nationwide assessment gap which leads local governments to place a disproportionate fiscal burden on racial and ethnic minorities."  The researchers discovered "that holding jurisdictions and property tax rates fixed, Black and Hispanic residents nonetheless face a 10-13% higher tax burden for the same bundle of public services."

"This assessment gap arises through two channels.  First, property assessments are less sensitive to neighborhood attributes than market prices are. This generates racially correlated spatial variation in tax burden within jurisdiction.  Second, appeals behavior and appeals outcomes differ by race."  Read the full report here.

 

Evidence:

Carlos Avenancio-Leon and Troup Howard.  "The Assessment Gap:  Racial Inequalities in Property Taxation."  June 2020