Assessment Ratios and Property Tax Burdens in Norfolk,Virginia, 1974–75*

To examine the relationship between property taxes and neighborhood housing, this paper employed property tax assessment to sale price ratios (i.e. effective tax rates) of residential properties sold during the period beginning July 1, 1974 through June 30, 1975. The analysis was designed to question whether or not the property tax in Norfolk results in different tax burdens for neighborhoods with different income levels. The results indicate there are substantial variations in effective tax rates within neighborhoods as well as between neighborhoods. More interesting is the fact that the property tax appeared to be progressive, given the measure used. If inequities in administration did not exist, it would be much more progressive. Such relationships indicate the existence of problems with the administration of the property tax in Norfolk. An examination of possible problems is conducted and some recommendations are made for potential corrective measures.