Assessing Inequalities in Property Taxation by Homeowner Age and Race

Homeowners within the same taxing jurisdiction can face very different effective property tax rates as a result of differences in assessment ratios. Younger homeowners, and Black and Hispanic homeowners are thought to face higher assessment ratios than older and White homeowners, contributing to reduced rates of homeownership entry and increased rates of homeownership exit via tax foreclosure. Assessment caps—currently implemented in nineteen states—are likely to be a particularly crucial factor since these policies limit growth in assessed values for incumbent homeowners when their homes’ market values grow faster than a capped rate. Sociologists Joe LaBriola, Robert Manduca and Pablo Mitnik will measure age- and race-based inequalities more accurately in property tax burdens, and the effects of assessment caps on these inequalities using a nationwide dataset of assessed and estimated market values for all residential properties in 2019 linked to consumer reference data containing the age of homeowners.