Key Citations:
1. Whitaker, Stephan and Thomas J. Fitzpatrick IV. 2013. “Deconstructing Distressed-Property Spillovers: The Effects of Vacant, Tax-Delinquent, and Foreclosed Properties in Housing Submarkets.” Journal of Housing Economics 22(2):79–91.
Tax Delinquent Properties
The Tax Delinquent Properties indicator measures the proportion of properties that are tax delinquent in a neighborhood. Property taxes are an important source of revenue for local governments to fulfill public services, such as police and fire services. Property taxes also heavily fund public K-12 education—another pertinent domain that is included in the HCAT. A high density of tax delinquent properties is detrimental for the economic vitality in the neighborhoods. Research shows that homes that are within 500ft of a tax delinquent property sell for 1-2% less than homes that are not as proximate to delinquent properties. This may seem marginal in terms of percentages, but can amount to thousands of dollars in economic loss in absolute terms; thus, eroding personal and neighborhood wealth. Data for the Tax Delinquent indicator comes from the Alabama Department of Revenue.