We Don’t Like These Curves: What Is the J-Curve and What Is It Costing You?
(Source: Unsplash.)
When looking at piles of data and intricate graphs, it’s easy to forget the real life implications of them. What do the fluctuations in a line really mean? Why does it really matter?
It’s been four years since the state performed a property tax assessment and homeowners are receiving their bill. An unsuspecting woman routinely flips through her spam mail and almost misses the important white envelope. She rips open the seal and unfolds the note. Her heart sinks as she scans the letter—her property tax bill has increased several thousands of dollars. There seems to be no reason for the increase, as there’d been no major renovations or additions to her property. She and her family had been conservative with their funds, holding off on major investments as they were working to afford basic necessities. They have to pay this bill; otherwise they’ll face possible foreclosure and homelessness.
This is one possible story told by the J-Curve.
(Click to enlarge.)
Simply put, the J-Curve shows that expensive homes are being undervalued, while less expensive homes are being overvalued in their property tax assessments. It’s a phenomenon occurring across the nation (learn more here); and in truth, these curves are costing us a lot financially and physically.
Property taxes are the number one source where local governments collect funds for public investments such as schools, public hospitals, and parks. The United States raises around $500 billion in property taxes every year, much of it coming from neighborhoods with smaller, cheaper homes. In Cook County Illinois, from 2011 to 2015, inequities in property assessment resulted in the improper billing of $2.2 billion in property taxes.
When the J-Curve is present, we are overburdening some individuals (potentially affecting their stress levels and health), while simultaneously losing out on thousands of dollars that could be used to better our cities and increase community morale.
We don’t like these curves because they show people are being overcharged in their property taxes, potentially causing unnecessary stress that may be affecting their health, and the functionality of their communities.
The property tax assessment system is flawed throughout the nation, and we’re working to change that. The Just Accounting for Health consortium, which includes Strong Towns, is collecting data and researching the potential causes and health effects of property tax inequities in Western North Carolina and suggesting solutions to flatten the J-Curve. Check out the website to stay involved and learn ways to start creating a change in your community.
Strong Towns and the Just Accounting for Health consortium are exposing the serious, systemic flaws in how properties are taxed across America. If you care about this cause, then join the movement. Become a Strong Towns member today.
Seairra Jones serves as the Staff Writer/Story Producer for Strong Towns. In the past, she's worked as a freelance journalist and videographer for a number of different organizations. She currently resides between small-town Illinois and the rural Midwest with her husband, where they help manage a family homestead. When Seairra isn’t focusing on how to make our towns stronger, you can find her outside working on the farm, writing fictional tales in a coffee shop, or reading in a hammock.