Attention Economy


Friday, March 12, 2021

Property Taxes in America

Homes in poor neighborhoods are taxed at roughly twice the rate of those in rich areas, study shows.
https://www.washingtonpost.com/business/2021/03/12/property-tax-regressive/
In theory, all homeowners in a given jurisdiction are subject to the same property tax rate, regardless of home value. But the methodology cities use to assess property values skews the final effective tax rates dramatically: Some homes are assigned considerably lower assessments than their actual market prices, while others are given much higher valuations.
These measurement errors aren’t random, according to study author Christopher Berry of the Harris School of Public Policy. Across the country, in city after city, homes in low-income neighborhoods are systematically over-assessed relative to their actual market prices, while those in rich areas are under-assessed. The net result is a transfer of billions of dollars of tax burdens from rich households to poor ones”.