{"id":176366,"date":"2020-07-02T19:19:00","date_gmt":"2020-07-03T00:19:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2020\/07\/02\/this-is-a-chicken-egg-thing\/"},"modified":"2020-07-02T19:19:00","modified_gmt":"2020-07-03T00:19:00","slug":"this-is-a-chicken-egg-thing","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2020\/07\/02\/this-is-a-chicken-egg-thing\/","title":{"rendered":"This is a Chicken Egg Thing"},"content":{"rendered":"<p>It turns out that <a href=\"https:\/\/www.washingtonpost.com\/business\/2020\/07\/02\/black-property-tax\/\">black home owners are assessed significantly higher property taxes than white home owners<\/a>.<\/p>\n<p>Obviously, racism figures prominently in this state of affairs, but the obvious question that is raised is whether this is an artifact of the communities in which they live, or does it effect people of color regardless of whether they live in largely segregated communities.<\/p>\n<p>It turns out that it&#8217;s a bit of both:<\/p>\n<blockquote><p><span style=\"color: blue;\">We decompose this finding into two  components. We show that slightly more than half of the assessment gap  can be explained by between-neighborhood variation. Residential sorting  by race in the U.S. means that the average black or Hispanic resident  faces a different set of local attributes than a white resident does.  Market prices appear to be substantially more sensitive to a wide range  of observable neighborhood characteristics than assessed valuations. We  use hedonic regressions to show that market prices and assessed values  align well on home-level attributes, but diverge on tract-level  characteristics. This mismatch, along with residential segregation  patterns, generates 6\u20137 percentage points of the total tax burden  inequality.<\/p>\n<p>We show that the remaining 5\u20136 percentage points of  inequality persists even within very small geography. We hypothesize  that the main channel for this effect is racial differ- entials in  property tax appeals. We use administrative data from Cook County, the  second largest county in the US, to demonstrate that such racial  differentials can exist: in Cook County, minority residents are 1% less  likely to appeal; are 2% less likely to win an ap- peal; and conditional  on success, receive a 2\u20133% smaller reduction. We then exploit racial  changes in ownership around property transactions to test for racial  differentials in assessment trajectories, and find patterns consistent  with an appeals mechanism in the national data. <\/span><\/p><\/blockquote>\n<p>There are communities that target minorities in all sorts of nefarious ways, (Ferguson, MO) for revenue, <b>AND<\/b> individual black homeowners are simply charged more, and when they appeal property tax assessments they more likely to be denied.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It turns out that black home owners are assessed significantly higher property taxes than white home owners. Obviously, racism figures prominently in this state of affairs, but the obvious question that is raised is whether this is an artifact of the communities in which they live, or does it effect people of color regardless of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[506,398,393,606,480],"class_list":["post-176366","post","type-post","status-publish","format-standard","hentry","tag-bigotry","tag-racism","tag-real-estate","tag-sociology","tag-taxes"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/176366"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=176366"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/176366\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=176366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=176366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=176366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}