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End the Property Tax Injustice!

1. Property Taxes' Unjust History

ERA 1: Origins & Racial Foundations (1800s-1920s)

The Beginning:

Why Property Taxes Exist:

  • 1800s: Primary revenue source for local governments (schools, roads, police, and fire)
  • Simple system: Tax based on property value (land + buildings)
  • Theory: Property owners benefit most from local services (should pay for them)

Racial Exclusion Built In:

Post-Civil War (1865-1900):

  • Black Americans: Excluded from homeownership
    • Slavery ended 1865, but no land redistribution ("40 acres" promise broken)
    • Property taxes only paid by those with property = mostly white
  • Result: White property owners controlled tax revenue and Black people were excluded from tax-funded services

Jim Crow Era (1890s-1960s):

  • Segregated Services: Black neighborhoods received fraction of white neighborhood services
    • Schools: Spent $10/Black student vs. $50/white student (1930s South)
    • Roads: Black neighborhoods were unpaved with no streetlights
    • Fire/police: Black areas underserved or over-policed
  • But: Property values kept artificially low in Black neighborhoods (through redlining, deed restrictions)
    • Lower assessed value = less tax revenue = worse services = continued disinvestment (vicious cycle)
ERA 2: Proposition 13 & the Tax Revolt (1970s-1980s)

The Context:

1970s California:

  • Property Values Were Skyrocketing: Inflation + population growth
  • Assessments: Jumped 50-100% in 3-5 years
  • Fixed-Income Homeowners: (Elderly, retired) couldn't afford tax increases
  • Crisis: 10,000+ elderly Californians lost homes to tax foreclosure (1977)

Proposition 13 (1978):

What It Did:

  • Capped Property Tax: 1% of assessed value (maximum)
  • Capped Assessment Increases: 2% per year maximum (even if home value rises 20%)
  • Reassessment Only on Sale: When property sells, reassessed at current value (new owner pays higher tax)

Intended Effect:

  • Protect Homeowners: From tax increases forcing them out

Actual Effects (Long-Term Disaster):

1. Intergenerational Inequality:

  • Long-Term Owners: Pay tiny taxes (bought 1978, assessed at 1978 value + 2%/year)
    • Example: Bought home 1980 for $100,000, 2025 value $1.5 million
    • Tax: 1% of $200,000 (1980 value + 45 years of 2% increases) = $2,000/year
  • New Buyers: Pay massive taxes (assessed at current value)
    • Buy same home 2025 for $1.5 million
    • Tax: 1% of $1.5 million = $15,000/year
  • Same House, 7.5x Difference in Tax Bills

2. Corporate Loophole:

  • Corporations: Transfer properties through LLCs (not "sales")
    • Avoid reassessment (keep low 1978 values)
  • Example: Disneyland pays taxes on 1975 assessed value (while individual homeowners pay current)

3. Service Collapse:

  • School Funding Was Devastated: Lost 50% of revenue (property taxes main source)
    • California schools: Ranked #1 in US (1960s) → Ranked #40 (2000s)
  • Infrastructure Crumbles: No money for roads, parks, and libraries

4. Racial Wealth Lock:

  • White Families: Bought homes 1950s-1970s (before prices exploded)
    • Keep low tax assessments (Prop 13 locks in)
    • Pass to children (keeps low assessment - "Prop 58")
  • Black/Latino Families: Priced out before Prop 13, buy after (if at all)
    • Pay full current taxes (no lock-in benefit)
  • Result: Prop 13 entrenches racial wealth gap

Spread to Other States:

  • Massachusetts: Prop 2½ (1980) - similar tax cap
  • Oregon, Colorado, and Others: Copy the California Model
  • Result: Nationwide school funding crisis and infrastructure decay
ERA 3: Assessment Inequality & Regressive Reality (1990s-2020s)

The Cook County Scandal (Chicago - Ongoing):

How Property Tax Should Work:

  • Fair Market Value: Assess all properties at actual worth
  • Same Tax Rate: Everyone pays same percentage
  • Progressive if: High-value properties assessed accurately, low-value assessed accurately

How It Actually Works (Cook County Revealed):

Chicago Tribune Investigation (2017):

  • Study: Analyzed 1.8 million properties (2003-2015)
  • Findings:
    • Wealthy Areas: Under-assessed by 30-40%
    • Poor Areas: Over-assessed by 20-30%
    • Result: Poor people pay MORE than their fair share, while the rich pay LESS

Example:

  • Wealthy Suburb Home: Worth $800,000, assessed at $500,000 (37% under)
    • Tax: 1% of $500,000 = $5,000/year (should be $8,000)
  • Poor Neighborhood Home: Worth $80,000, assessed at $100,000 (25% over)
    • Tax: 1% of $100,000 = $1,000/year (should be $800)
  • Poor Person Pays 25% MORE, While the Rich Person Pays 37% LESS

Who Benefits:

  • Wealthy Homeowners: Save thousands/year (wrongly low assessments)
  • Corporations: Industrial properties massively under-assessed
  • Rich Suburbs: (Winnetka, Hinsdale) pay 30% less than should

Who Pays:

  • Black Neighborhoods: (South/West Side Chicago) pay 25% more than they should
  • Working-Class: Pay to subsidize the wealthy

Why This Happens:

  • Political Pressure: Wealthy suburbs pressure the assessor (threaten lawsuits, have lawyers)
  • Appeal Process: the Rich hire lawyers to appeal (win reductions), while poor cannot afford
  • Corruption: Campaign donations from wealthy property owners to assessor
  • Lack of Oversight: No one audits assessor systematically

Nationwide Problem:

  • Study (2021 - University of Chicago): Analyzed 23 million properties across US
    • In Every City: Wealthy areas were under-assessed, and the poor were over-assessed
    • Gap: 10-40% (varies by city)
    • Black Neighborhoods: Over-assessed in 98% of cities studied
ERA 4: Tax Foreclosure as Modern Dispossession (2000s-Present)

Property Tax Foreclosures:

The Numbers:

  • 10,000-15,000/year Nationwide: Homes lost to property tax foreclosure [Source: Lincoln Institute of Land Policy, 2023]
  • Disproportionately: the Elderly, the disabled, and Black homeowners

How It Happens:

Step 1: Fall Behind:

  • Homeowner: Cannot pay property taxes (fixed income, medical emergency, and job loss)
  • Debt Grows: 10-18% annual interest + penalties
  • Example: $3,000 tax bill becomes $10,000 in 3 years

Step 2: Tax Lien:

  • County: Sells tax lien to investor (or keeps it)
  • Investor: Pays back taxes and owns the lien (earns 10-18% interest)

Step 3: Foreclosure:

  • If Unpaid: After 2-3 years, foreclose (take entire home)
  • Auction: Sell home at auction
  • Homeowner: Gets NOTHING (even if home worth $200,000, owed $10,000 taxes)
    • In many states, excess equity goes to the government/investor (NOT the homeowner)

The Predators:

Tax Lien Investors:

  • Buy Liens: $3,000-10,000 tax debts
  • Foreclose: Take $100,000-300,000 homes
  • Profit: 1,000-10,000% return
  • Example: Buy $5,000 tax lien, foreclose, and sell the home for $150,000 = $145,000 profit

Notorious Cases:

Detroit (2010s):

  • 100,000 Properties: Tax-foreclosed (2010-2015)
  • Over-Assessments: City assessed homes at 2-4x actual value
    • Home worth $30,000, assessed at $100,000
    • Tax: $3,000/year (10% of income for poor families)
  • Couldn't Pay: Foreclosed, lost homes
  • Investors: Bought for pennies, resold for profit
  • Entire Neighborhoods: Emptied (Black homeowners dispossessed)

Chicago (2000s-2010s):

  • 30,000+ Properties: Tax-foreclosed (mostly South/West Side)
  • Scavenger Sale: Annual auction of tax liens
  • Buyers: Investors pay $500-5,000 for liens, foreclose on $100,000 homes
  • Black Wealth: $1 billion+ was stolen (equity lost to tax foreclosure)

2. The Stats

Current Property Tax Burden (2024)

National Overview:

  • Total Property Tax Revenue: $628 billion/year [Source: US Census Bureau, 2024]
  • Average Household: $3,719/year in property taxes [Source: ATTOM Data Solutions, 2024]
  • Percentage of Home Value: 0.99% average effective rate [Source: Tax Foundation, 2024]

State Variation (Highest Rates):

  1. New Jersey: 2.23% effective rate ($9,490/year average) [Source: Tax Foundation]
  2. Illinois: 2.08% ($5,600/year average)
  3. Connecticut: 1.89% ($7,270/year)
  4. New Hampshire: 1.86% ($6,840/year)
  5. Vermont: 1.83% ($5,890/year)

State Variation (Lowest Rates):

  1. Hawaii: 0.28% ($1,893/year)
  2. Alabama: 0.41% ($895/year)
  3. Louisiana: 0.52% ($1,320/year)
  4. Delaware: 0.56% ($1,773/year)
  5. West Virginia: 0.57% ($940/year)

Geographic Disparities:

  • Northeast: Highest taxes (fund schools, services)
  • South: Lowest taxes (underfund schools, fewer services)
  • Midwest: Middle (high in IL, OH; low in IN, MO)
  • West: Varies (CA capped by Prop 13, TX high but no income tax)
Racial Disparities in Property Tax Burden

Assessment Inequality (University of Chicago Study, 2021):

  • Methodology: Analyzed 23 million properties across US
  • Findings:
    • Black-Majority Neighborhoods: Over-assessed by 10-25%
    • White-Majority Neighborhoods: Under-assessed by 10-20%
    • Median Black homeowner: Pays $390 MORE per year than should [Source: University of Chicago Harris School]
    • Median White Homeowner: Pays $340 LESS per year than should

Lifetime Impact:

  • Over 30 Years: Black homeowner overpays $11,700 (vs. white underpays $10,200)
  • Gap: $21,900 wealth transfer from Black to white homeowners (through unfair taxation)

Tax Foreclosure Disparities:

  • Black Homeowners: 2.5x more likely to lose homes to tax foreclosure [Source: Lincoln Institute, 2023]
  • Reasons:
    • Over-assessed (pay more than should)
    • Lower incomes (harder to afford)
    • Less access to relief programs (don't know about exemptions)
    • Targeted by predatory tax lien investors

3. Victims of the Current System

1. Elderly Homeowners (Fixed Income):

  • 7.5 million Elderly: Paying >5% of income on property taxes [Source: AARP, 2023]
  • "House Rich, Cash Poor": Own home worth $300,000, live on $24,000/year Social Security
    • Property tax: $4,500/year (19% of income - unsustainable)
  • Tax Foreclosures: 12,000 elderly/year lose homes [Source: AARP]

2. Black Homeowners:

  • Over-Assessed by 10-25%: Pay $390/year more than should
  • Lower Incomes: Median Black household income $48,000 (vs. $74,000 white)
  • Tax Burden: 3.2% of income (vs. 2.1% for white homeowners)
  • Foreclosure Risk: 2.5x higher than white homeowners

3. Low-Income Homeowners:

  • Bottom 20% Income: Pay 4.5% of income on property taxes [Source: ITEP, 2024]
  • Top 20% Income: Pay 1.8% of income (regressive system)
  • Result: Poor subsidize rich (through over-assessment + higher burden)

4. Disabled Homeowners:

  • Fixed SSI/SSDI: $943-$1,500/month (cannot afford tax increases)
  • Accessibility Modifications: Increase assessed value (penalized for making home accessible)
  • Foreclosure Risk: 40% higher than non-disabled [Source: National Disability Institute]

5. Gentrifying Neighborhoods:

  • Rapid Appreciation: Home value doubles in 5 years
  • Assessment Spike: Tax bill doubles
  • Long-Term Residents: Cannot afford (forced to sell)
  • Example - Brooklyn: Median property tax up 60% (2010-2020) in gentrifying areas
    • Black homeownership: Down 15% (tax-driven displacement)

4. Solution: Progressive Property Tax Reform

GOAL: Tax Justice + Fund Services Without Property Tax

Key Principle: Schools are funded by the federal government ($1 trillion/year)

  • Removes: Biggest pressure on property taxes
  • Allows: Major property tax reduction (40-50% of revenue currently goes to schools)
A. Progressive Residential Property Tax
Owner-Occupied Primary Residence:
Property Value Tax Rate Annual Tax Example
$0-$200,000 0.25% $0-$500
$200,001-$400,000 0.75% $500-$2,000
$400,001-$750,000 1.25% $2,000-$6,875
$750,001-$875,000 2% $6,875-$23,125
$875,001-$1,000,000 (wealth cap exemption) 3% Capped at wealth cap

Example Calculations:

Working-Class Home ($150,000):

  • Old System (1% flat): $1,500/year
  • New System (0.25%): $375/year
  • Savings: $1,125/year ($33,750 over 30 years)

Middle-Class Home ($350,000):

  • Tier 1: $200,000 × 0.25% = $500
  • Tier 2: $150,000 × 0.75% = $1,125
  • Total: $1,625/year (vs. $3,500 old = saves $1,875/year)

Upper-Middle Home ($600,000):

  • Tier 1: $200,000 × 0.25% = $500
  • Tier 2: $200,000 × 0.75% = $1,500
  • Tier 3: $200,000 × 1.25% = $2,500
  • Total: $4,500/year (vs. $6,000 old = saves $1,500)

Mansion ($1,000,000):

  • Tier 1-3: $4,500 (same as above)
  • Tier 4: $750,000 × 2% = $15,000
  • Tier 5: $1,000,000 × 3% = $30,000
  • Total: $49,500/year (vs. $30,000 old = pays $19,500 MORE)

Non-Owner-Occupied Property (Investment/Speculation):

Base Rate: 5% (all value) Additional Properties: +0.75% per property

Property Rate Example ($500,000 property)
1st investment property 5% $25,000/year
2nd investment property 5.75% $28,750/year
3rd investment property 6.5% $32,500/year
4th investment property 7.25% $36,250/year
5th+ investment property 8%+ $40,000+/year

Purpose: Make speculation unprofitable (cannot cover with rent)

Example: Investor with 10 properties:

  • Average value: $400,000 each
  • Total value: $4 million
  • Tax rate: 5% base + (9 × 0.75%) = 11.75%
  • Annual tax: $470,000/year
  • Rental income: $3,000/month × 10 = $360,000/year
  • Loss: $110,000/year (forced to sell)
Corporate-Owned Residential:

LLC-Owned: 10% (all value) Private Equity: 15% (all value)

Owner Type Rate Example ($10M building)
Individual 0.25-3% $25,000-300,000/year
LLC (single property) 10% $1,000,000/year
Private Equity 15% $1,500,000/year

Purpose: Force corporate divestment (cannot hold profitably)

Example: Blackstone 50-Unit Building:

  • Building Value: $10 million ($200,000/unit)
  • Tax (15%): $1,500,000/year
  • Tax per Unit: $30,000/year ($2,500/month)
  • Rental Income: $1,500/month × 50 = $900,000/year
  • Loss: $600,000/year (MUST sell within 5 years)
Vacant Property:
Vacant Duration Additional Surcharge Total Rate
<6 Months 0% Normal rate
6-24 Months +5% Normal + 5%
2-5 Years +10% Normal + 10%
5+ Years +15% + seizure eligible Normal + 15%
B. Circuit Breaker Programs (Cap Tax as % of Income)

For Vulnerable Homeowners:

Who Qualifies:

  • Seniors (65+): All seniors, regardless of income
  • Disabled: SSI/SSDI recipients
  • Low-Income: <80% Area Median Income

How It Works:

  • Cap: Property taxes cannot exceed 3% of gross income
  • If Exceed: State pays the difference (or defers until home sold)

Example: Elderly Widow

  • Income: $24,000/year (Social Security)
  • Home Value: $250,000
  • Tax Without Circuit Breaker: $1,875/year (new progressive rate)
  • 3% Cap: $720/year maximum
  • State Pays: $1,155/year

Deferral Option:

  • Choose to Defer: Don't pay now, pay when home sold/inherited
  • No Interest: 0% (not a loan, just deferred obligation)
  • Purpose: Let people age in place (not forced to sell)

Cost:

  • $15 billion/year Nationally: Circuit breaker payments
  • Funded by: Wealth tax and mansion tax increases
C. Homestead Exemption Expansion

Current (Most States):

  • $10,000-30,000 Exemption: First $X of value not taxed
  • Too Small: Doesn't provide meaningful relief

New Federal Standard:

  • $100,000 Exemption: First $100,000 of primary residence not taxed
  • Senior/Disabled: $150,000 exemption
  • Veterans: $175,000 exemption

Example:

  • Home Value: $300,000
  • Exemption: $100,000
  • Taxable Value: $200,000 (not $300,000)
  • Tax Savings: $1,000/year (at 1% rate)
D. Land Value Tax (Georgist Reform)

Split-Rate Taxation:

Tax Land Higher, Buildings Lower:

  • Land: 3-4% of assessed land value
  • Buildings/Improvements: 0.25-0.5% of building value

Why This Works:

1. Discourages Speculation:

  • Vacant land: Very expensive to hold (high land tax, no building to offset)
  • Forces Development: Build or sell (can't profitably speculate)

2. Encourages Development:

  • Building Improvements: Taxed minimally (incentive to build, renovate)
  • Density: Rewarded (more units = more value, but land tax same)

3. Captures Public Value:

  • Transit, Parks, and Schools: Increase land value (not building value)
  • LVT Captures: Public investment returns to public (not private landowners)

Example: Downtown Vacant Lot

Current System:

  • Land: $5 million
  • Building: $0 (vacant)
  • Tax (1%): $50,000/year
  • Owner: Can afford to hold (wait for appreciation)

Land Value Tax:

  • Land: $5 million × 3.5% = $175,000/year
  • Building: $0
  • Total Tax: $175,000/year
  • Owner: Cannot afford (must develop or sell)

Example: Apartment Building

  • Land: $5 million × 3.5% = $175,000
  • Building: $20 million × 0.5% = $100,000
  • Total: $275,000/year
  • Vs. Current (1% total): $250,000/year
  • Slight Increase BUT: Incentivized density (more units = more revenue to cover tax)
E. Assessment Reform (End Racist Over-Assessment)

The Problem:

  • Black/Poor Neighborhoods: Over-assessed
  • White/Rich Areas: Under-assessed
  • Cause: Manual assessments, political pressure, and appeals process

The Solution:

1. Algorithmic Assessment (Transparent):

  • Use: Sales comparables algorithm (computer calculates)
  • Open-Source: Algorithm publicly available (can be audited)
  • Regular Updates: Annual reassessment (prevent stale assessments)
  • Appeals: Automatic if >10% over comparable sales

2. Independent Assessment Bureau:

  • Remove: Assessor from political control (currently elected/appointed by politicians)
  • Create: Federal Property Assessment Standards Board
    • Professional assessors (civil service)
    • Audits local assessments
    • Penalizes jurisdictions with >5% disparity (Black vs. white neighborhoods)

3. Mandatory Reimbursement:

  • If Over-Assessed: Automatic refund for the past 5 years
  • Homeowner Doesn't Sue: Government proactively refunds
  • Example: Over-assessed $20,000 (should be $100,000, was $120,000)
    • Overpaid: $200/year × 5 years = $1,000
    • Refund: $1,000 + interest

4. Penalties for Discrimination:

  • If a Pattern Is Found: (Black areas systematically over-assessed)
  • Local Government Is Fined: $10 million+ (paid to affected homeowners)
  • Assessor Is Fired: Criminal charges if intentional
F. Tax Foreclosure Abolition

End Home Theft:

1. Ban Excess Equity Seizure:

  • Currently: Many states let government/investors keep ALL equity
    • Owe $5,000 taxes, home worth $200,000 → foreclose, government/investor keeps the $200,000
  • NEW: Homeowner keeps equity (minus debt + costs)
    • Owe $5,000, home sells for $200,000 → homeowner gets $190,000 (minus $5,000 debt, $5,000 costs)
    • Modeled after: Nebraska (only state that does this correctly)

2. Extended Redemption Period:

  • Currently: 2-3 years to pay back taxes before foreclosure
  • NEW: 10-year redemption period
  • Payment Plans: $100/month (affordable) vs. a lump sum

3. Ban Investor Tax Liens:

  • Currently: Investors buy tax liens (profit from foreclosures)
  • NEW: Only government can hold liens
  • No Private Profit: From homeowner distress

4. Automatic Circuit Breaker Enrollment:

  • If Behind on Taxes: Automatically enroll in circuit breaker (cap at 3% income)
  • Forgive Arrears: Wipe out back taxes (fresh start)

5. Foreclosure as a Last Resort:

  • Only after:
    • 10-year redemption period expired
    • Payment plan offered (and refused)
    • Circuit breaker offered (and homeowner still can't pay)
    • Social services offered (case manager checks for hardship)

Cost:

  • $5 billion/year: Arrears forgiveness + circuit breaker expansion
  • Prevents: 10,000-15,000 foreclosures/year (keeps people housed)

5. Honey badger Enforcement

A. Assessment Discrimination Prosecutions

Target: Corrupt Assessors:

Federal Investigation:

  • DOJ Civil Rights Division: Investigates assessment patterns
  • Statistical Analysis: Compare Black vs. white neighborhood assessments
  • If There's a Disparity >10%: Presumed discrimination (assessor must prove otherwise)

Criminal Charges:

  • Civil Rights Violation: 18 USC § 242 (deprivation of rights under color of law)
  • Fraud: If intentionally over-assessing to generate revenue
  • Penalties:
    • 10 years in federal prison
    • $250,000 fine
    • Full restitution (refund all overcharged taxes + damages)

Example: Cook County Assessor (Chicago)

The Crime:

  • Joe Berrios: Cook County Assessor (2010-2018)
  • Pattern: Black South Side was over-assessed by 30%, white North Side was under-assessed by 25%
  • Corruption: Took campaign donations from wealthy property owners and lowered their assessments
  • Harm: $2 billion was stolen from Black homeowners (over 8 years)

Current Status: Voted out 2018 with no criminal charges

Under Our Policy:

  • FBI Investigation: Launched 2028
  • Charges: Civil rights violations (systematic discrimination) + bribery + fraud
  • Evidence: Statistical analysis (undeniable pattern) + emails showing quid pro quo
  • Trial: Federal court
  • Sentence: 15 years in federal prison
  • Restitution: $2 billion paid to Black homeowners (seized from Berrios' assets + county insurance)
B. Tax Lien Investor Prosecutions

Target: Predatory Foreclosure Profiteers

The Crime:

  • Buy Tax Liens: $3,000-10,000
  • Foreclose: Take $100,000-300,000 homes
  • Extract: $97,000-290,000 profit (from distressed homeowners)
  • Particularly Target: Elderly, disabled, Black homeowners (vulnerable populations)

Federal Law:

  • Elder Abuse: If target seniors (18 USC § 371 conspiracy to commit elder abuse)
  • Civil Rights: If racial targeting (42 USC § 1982 - interfere with property rights)
  • RICO: If systematic (organized enterprise of foreclosure profiteering)

Penalties:

  • 20 Years in Federal Prison: Per victim (if pattern of 10+ victims = 200 years)
  • Triple Damages: Return 3x profits to victims
  • Asset Forfeiture: Seize all real estate acquired through tax liens

Example: Tax Lien Investor Ring (Detroit)

The Crime:

  • 2010-2015: Investors bought 50,000+ tax liens (Detroit)
  • Foreclosed: On 30,000 homes (mostly Black elderly homeowners)
  • Profit: $500 million+ (bought $10,000 liens, sold $100,000 homes)

Current Status: Some civil lawsuits with no criminal charges

Under Our Policy:

  • FBI RICO Investigation: Targets top 50 investors
  • Charges: RICO + elder abuse + civil rights violations
  • Evidence: Pattern of targeting Black elderly neighborhoods
  • Trials: Federal court
  • Sentences: 50-100 years each (multiple victims)
  • Restitution: $1.5 billion (3x profits) paid to 30,000 families
  • Homes Returned: Families get homes back OR $100,000 compensation
C. Proposition 13 Corporate Loophole Prosecutions

The Crime (California-Specific but Nationwide Pattern):

Corporations:

  • Transfer Properties Through LLCs: Avoid "sale" trigger
  • Example: Disney transfers Disneyland from LLC A to LLC B (both Disney-owned)
    • Not considered "sale" (stays assessed at 1975 value)
    • Saves $50+ million/year in taxes
  • Scale: $5-10 billion/year in lost California tax revenue

Federal Investigation:

  • Tax Fraud: If transfers structured solely to evade taxes
  • Shell Company Fraud: If LLCs exist only for tax avoidance

Penalties:

  • Reassess All Properties: To current value (retroactive 10 years)
  • Back Taxes Owed: $50 billion+ (from all California corporations)
  • Criminal Charges: Corporate executives (10 years prison for systematic tax fraud)

Example: Disney (Real Ongoing Abuse)

The Crime:

  • Disneyland: Assessed at $1 billion (1970s value)
  • Actual Value: $50 billion+ (conservative estimate)
  • Underpayment: $500 million/year in taxes
  • Over 50 Years: $25 billion+ stolen from California schools/services

Current Status: Legal (Prop 13 loophole)

Under Our Policy:

  • 2029: Loophole closed and reassessment ordered
  • Disney Owes: $25 billion back taxes (10-year lookback)
  • Criminal Investigation: Disney executives are charged with systematic tax fraud
  • Sentence: CEO + CFO 5 years prison each
  • Payment: Disney pays $25 billion (largest tax bill in history)
  • Revenue: Funds California schools for 2 years
D. Gentrification Assessment Caps (Prevent Displacement)

The Problem:

  • Rapid Gentrification: Home values double in 5 years
  • Assessment Follows: Tax bill doubles
  • Long-Term Residents: Cannot afford (forced to sell to developers)

Honey Badger Solution:

Anti-Displacement Assessment Cap:

  • Long-Term Residents (10+ years): Assessment cannot increase >3% per year
  • Even If: Market value rises 20%/year (assessment capped)
  • Purpose: Protect residents from tax-driven displacement

Example: Brooklyn Gentrification

  • 2010: Home worth $300,000, tax $3,000/year
  • 2020: Home worth $900,000 (3x)
  • Without Cap: Tax $9,000/year (3x - unaffordable for fixed-income owner)
  • With Cap: Tax $4,000/year (3% increase × 10 years)
  • Savings: $5,000/year (resident can stay)

Catches Up on Sale:

  • If It Sells: Reassessed to current value (new buyer pays market rate)
  • If It Doesn't Sell: Keep capped rate (age in place)

Funding Gap:

  • Lost Revenue: $10 billion/year (from capping gentrifying areas)
  • Made up by: Mansion tax increases (tier 6 homeowners pay more)
E. Offshore Property Ownership Crackdown

The Problem:

  • Oligarchs & Money Launderers: Buy US property through shell companies
  • Hide Ownership: Untraceable LLCs (Cayman Islands, Delaware)
  • Avoid taxes: Under-report value, hide transfers

Honey Badger Solution:

1. Beneficial Ownership Registry:

  • All Property: Must disclose ultimate owner (real human being)
  • No Shell Companies: LLC must disclose who controls it
  • Public Database: Anyone can search (who owns what)

2. Foreign Ownership Ban (or Massive Tax):

  • Non-US Citizens/Residents: Cannot own US residential property
  • OR: Pay 25% tax on purchase + 5% annual wealth tax on property

3. Criminal Penalties:

  • Hiding Ownership: 10 years in federal prison (money laundering)
  • Tax Evasion: 15 years in prison
  • Asset Forfeiture: Seize property (if owned through fraud)

Example: Russian Oligarch Mansions (Miami, NYC)

The Crime:

  • $500 million Worth: Of US real estate owned by Russian oligarchs
  • Shell Companies: Cayman Islands LLCs hide ownership
  • Sanctions Evasion: Bought after sanctions (illegal)

Current Status: Some are known, but it's hard to prove ownership

Under Our Policy:

  • 2029: Beneficial ownership registry created
  • All LLCs: Must disclose ultimate owners
  • 20 Oligarchs Are Identified: Own $500M US property
  • Asset Seizure: All properties forfeited (sanctions violations)
  • Criminal Charges: Money laundering, tax evasion
  • Properties Are Sold: $500 million becomes affordable housing (transferred to CLTs)

6. Funding

COST: $35 BILLION/YEAR (NET)

  • Circuit breaker: $15B/year
  • Assessment reimbursement: $10B/year
  • Foreclosure prevention: $5B/year
  • Lost revenue (progressive rates): $50B/year
  • Gained Revenue (Enforcement): $45B/year (corporate back taxes, oligarch seizures)
  • Net cost: $35B/year

FUNDED BY:

  • Mansion tax (tier 6 homes): $20B/year
  • Corporate property tax increases: $30B/year
  • Land value tax shift: Revenue-neutral (shift from buildings to land)
  • Net Surplus: $15B/year

THIS IS HOW YOU END PROPERTY TAX INJUSTICE - PROGRESSIVE RATES, PROTECT VULNERABLE, PROSECUTE EXPLOITERS.