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Tough to measure. A couple data points: -NY state estimate $150–200M per year lost to real estate transfer tax fraud and evasion. On $3B receipts that is 5-6%
by CGMthrowaway 1y ago
Tough to measure. A couple data points:
-NY state estimate $150–200M per year lost to real estate transfer tax fraud and evasion. On $3B receipts that is 5-6% breakage.
-Harris County (Houston) found $21M in improper homestead exemptions. On ~$7B receipts that is ~0.3% breakage
-Miami-Dade found $35M on $6.5B for improper homestead exemptions, 0.5% breakage
For comparison, IRS net tax gap is about 12%
- deleted 1y ago[deleted]
- PopAlongKid 1y agoOne would expect transfer tax fraud/evasion to be an order of magnitude different from improper homestead exemptions.
- CGMthrowaway 1y agoFor sure. Probably should be using the total homestead exemption eligibility as the denominator instead of prop tax receipts. Even then transfer tax is a "hill" and the homestead exemption is a "valley." But It's hard enough to estimate any of this data from a keyboard in a few seconds