An alarming analysis by ABC Owned Television Stations reveals a critical issue within the American housing landscape: disproportionate property taxes are systematically forcing homeowners, particularly those residing in majority-nonwhite neighborhoods, out of their homes. This pervasive economic injustice creates a dire situation where tax burdens do not align with property values, leading to devastating consequences for vulnerable families.
Consider the harrowing ordeal of Bonita Anderson, a lifelong Baltimore resident who, after years of mortgage payments, faced a cancer diagnosis in 2020. Amid mounting medical bills, she fell behind on her property taxes by approximately $5,000. Despite her attempts to fight for her home, Anderson tragically lost her house at a Baltimore City tax sale in 2022, finding herself homeless at 70 years old.
The mechanics of these tax sales often exploit homeowners. The City of Baltimore placed a lien on Anderson’s tax debt, which was then auctioned to a company specializing in tax lien purchases for a fraction of the home’s value. Even when Anderson paid more than triple her outstanding taxes, the city misapplied these funds to the new owner’s accrued taxes, unknowingly facilitating the foreclosure of her home by the investor in 2023.
Anderson’s case is not isolated; it is a symptom of a broader systemic problem. From 2019 through 2023, nearly 44,000 Baltimore properties were listed at municipal tax sales. A staggering 92% of these properties were located in majority-nonwhite neighborhoods, which constitute only 70% of the city’s parcels. This stark racial disparity in property tax burdens is a key driver of housing instability.
Further analysis of ATTOM and U.S. Census Bureau data by ABC Owned Television Stations confirms that homeowners in predominantly Black and Brown areas nationwide tend to pay significantly higher property taxes than their counterparts in mostly white neighborhoods for homes of comparable market value. This suggests property assessments, which are inherently subjective, are often distorted, punishing the poorest homeowners and perpetuating a “double whammy” where communities of color face higher tax assessments while often receiving lower appraisals for loans.
The issue extends beyond urban centers, affecting suburban communities as well. In suburban Delaware County, Pennsylvania, 91-year-old Gloria Gaynor, suffering from dementia, lost her home of 25 years over just $3,500 in unpaid taxes from the COVID-19 pandemic. Similar to Anderson, her payments were misapplied, leading to a real estate investor acquiring her home for a minimal sum, despite the county claiming adherence to state law.
While local governments are obliged to collect taxes, the varying protections for vulnerable homeowners across communities highlight a critical need for reform. Some cities, like Philadelphia, implement robust safeguards such as in-person notifications and payment plans. The U.S. Supreme Court’s 2023 ruling, prohibiting local governments from profiting beyond the taxes and penalties owed, offers a glimmer of hope for greater equity in tax sales.
Experts warn that as municipalities increasingly rely on property taxes, situations like Anderson’s and Gaynor’s may become more common, disproportionately impacting homeowners in majority-nonwhite neighborhoods. The dream of passing down generational wealth through homeownership, as Bonita Anderson tragically articulated, “died,” underscoring the urgent need for federal support and policy changes to ensure fair and equitable property tax systems for all citizens.
