No racial bias found in Durham Co. property tax assessments, but there are disparities
There’s no evidence of racial bias in Durham County’s property tax assessments, but that doesn’t mean there aren’t disparities among property owners who challenge their new tax values.
Results of a Durham County study conducted with the UNC School of Government were presented Monday during a virtual county commissioners work session.
The goal of the study was to learn whether taxpayers’ demographics, like race or income, affected their appeal rates and results, said Chris McLaughlin, a School of Government professor.
For local governments, McLaughlin says, it’s important to set tax appraisals at true market value, and appeals help them reach that goal.
Researchers used appeals data from the two most recent Durham County reappraisals in 2016 and 2019.
They found that appeal rates varied based on a neighborhood’s racial composition and property value. Appeals happen less in neighborhoods with more diverse taxpayers than in neighborhoods with more white residents, McLaughlin said.
The more expensive the home, the more often the owner is likely to appeal their appraisal, the study showed.
‘Assessment gap’
This could indicate an “assessment gap,” McLaughlin said, or when fewer successful appeals from poor and diverse taxpayers increase the likelihood that their tax assessment are father away from true market value.
The results of the appeals, however, were not affected by factors like race, income or property value, which McLaughlin cited as a positive finding.
“If we did think there was a built-in inherent bias here in fact, the decision-makers perhaps did have some implicit or explicit bias against particular demographics of taxpayers, we’d see that in the appeals process,” McLaughlin said.
Researchers found that the gap between appeal rates decreased from 5.4% in 2016 to 4.2% in 2019, which McLaughlin also said is positive.
“Perhaps that means we’re working towards getting it much more equivalent, but there’s still a difference,” he said referencing the data.
The study is consistent with the county’s strategic plan, which includes eliminating systemic racism from its processes. It will also help staff as they prepare for the next countywide reappraisal in 2022, said Dwane Brinson, tax administrator for the county.
“The board has deemed racism, or any -ism, as a public health crisis,” Brinson said at Monday’s meeting.
This story was originally published November 2, 2021 at 5:55 AM.
