Lars Doucet, author of "Land is a Big Deal" and a property tax expert, joins the conversation to unravel the complexities of property assessment. He explains how cities value properties and the political dynamics behind tax rates. The discussion covers the challenges of maintaining equity in assessments, especially with discrepancies between neighbors. Doucet shares insights on how technological tools like GIS are reshaping the landscape of property valuation and the potential benefits of predictive analytics in creating fair tax policies.
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insights INSIGHT
Property Tax Politics
The appraisal district assesses property values but cannot set tax rates.
This separation of duties prevents conflicts of interest and makes the district a "whipping boy" for tax increases.
question_answer ANECDOTE
Window Tax
England once taxed properties based on window count, leading to bricked-up windows to evade taxes.
This illustrates how tax policies can have unintended consequences and behavioral responses.
insights INSIGHT
Defining Market Value
Market value in property assessment considers what an unconstrained buyer would pay with full information and no duress.
Assessors aim for this value on a specific date (e.g., January 1st) using recent sales data.
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Why Rent Is Too High, Wages Too Low, and What We Can Do about It
Noah Smith
James Cavin
Samuel Sibley
Scott Alexander
Lars Doucet
In 'Land Is a Big Deal,' Lars A. Doucet delves into the economic theories of Henry George, particularly the concept of Georgism. The book is divided into two parts: the first part summarizes George's main arguments from 'Progress and Poverty,' while the second part empirically tests these theories using modern data. Doucet argues that land and its policies have a significant impact on the economy, leading to issues such as high rents, oppressed workers, and environmental degradation. He proposes the implementation of a land value tax as a solution to these problems, demonstrating how it could raise substantial revenue and alleviate economic inequalities. The book also addresses common criticisms of the land value tax and provides case studies to support its feasibility[1][4][5].
In this episode, Patrick McKenzie (patio11) and Lars Doucet, the author of Land is a Big Deal, discuss how cities determine your property's value and collect taxes. They explore how assessment offices juggle political pressures, statistical models, and technological tools while trying to maintain equity across millions of properties. They also cover why assessment offices are separate from tax collectors, how property value protests actually work, and why your neighbor's house might be assessed differently than yours.
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– Timestamps (00:00) Introduction (00:23) How property taxes work (Texas Example) (02:45) The political art of avoiding tax rate blame (05:53) Sources of real estate data (08:08) Historical property assessment (11:04) Statutory guidance vs. Actual practice on market value assessment (14:25) Tax rate strategy and sandbagging (15:17) Assessed value vs market value (16:16) Assessment caps and Prop 13 (18:22) Sponsor: GiveWell | Check (20:27) Data collection in the field (22:54) Data collection methods (25:08) Property valuation: Beyond location and correlative factors (26:52) Depreciation of buildings (27:37) Orthodox view of depreciation (30:53) Real estate cultural differences (33:59) Urban redevelopment and land value (36:59) Small business realities and perceptions (46:19) Property tax protests (50:45) Predictive protests (52:19) Accuracy vs equity testing (58:50) Cook county assessor's office (1:01:11) Lars's background (1:05:38) What is GIS? (1:09:52) Wrap
Complex Systems with Patrick McKenzie (patio11) 