The Racial Inequities of Property Taxes in America: A Call for Systemic Change

Property taxes have long been a source of revenue for local governments and school districts, but they have also been a powerful engine of racism and wealth inequality in our country. The Biden administration has proposed solutions to make the tax code fairer, but the fundamental issue remains unresolved.

Black and Latino homeowners have been disproportionately impacted by property taxes, with studies showing they are often overtaxed compared to their white counterparts. This disparity has only worsened the wealth gap between affluent and poorer communities. The system is inherently flawed, with tax rates based on the collective wealth of a community, leading to lower effective tax rates in wealthy neighborhoods and higher rates in poorer ones.

Throughout history, property assessments have been manipulated to benefit the wealthiest areas while burdening Black communities. Black homeowners have been overtaxed since acquiring property after emancipation, with assessments often valuing their property higher than its actual worth. This has resulted in Black taxpayers subsidizing white education and infrastructure, further perpetuating racial inequalities.

The issue of racist property assessments has persisted through decades, with studies showing that assessments in Black neighborhoods continue to be regressive. The overtaxation of Black homes is not just a local issue; it is a symptom of America’s federated fiscal structure, which disproportionately disadvantages communities with large Black populations.

Technical solutions exist to make property taxes fairer, such as adopting accurate assessment models and regularly updating assessment rolls. However, widespread reform is needed at the federal level to address the root causes of racism and wealth inequality perpetuated by property taxes. A federal fiscal-equity program, similar to those in other advanced nations, could help redistribute resources to local governments and school districts in need.

President Biden’s proposed tax on the wealthiest individuals could generate significant revenue to support such a program. By enacting a wealth tax on the 1 percent, the federal government could ensure that every city, county, and public school system in America has the resources they need to thrive. This would help counteract the unequal outcomes and injustices caused by the current property tax system.

In conclusion, property taxes have played a significant role in perpetuating racism and wealth inequality in our country. Addressing these issues requires more than just technical solutions; it demands a fundamental re-examination of how taxes are distributed and a commitment to fair and equitable policies at the federal level.