“Highballed”: How Disproportionate Property Taxes Force People From Their Homes

What “highballed” really means

In real‑estate jargon, a property is “highballed” when an assessor inflates its market value well beyond what comparable homes are actually selling for. The inflated figure becomes the basis for the property tax bill, often pushing homeowners into a financial cliff they cannot climb. While the term originated in appraisal circles, it now describes a systemic problem: tax assessments that outpace local market realities, forcing families to abandon homes they have lived in for generations.

The mechanics of a runaway tax bill

Most U.S. jurisdictions calculate property tax by multiplying the assessed value by a mill rate (the tax levy per $1,000 of value). When assessors “highball” a property, the mill rate stays the same, but the assessed value spikes, and the resulting tax bill can increase by 30‑50 % or more in a single year. For homeowners on fixed incomes, especially seniors on Social Security or veterans’ benefits, that surge can exceed 10 % of their total household income—an unsustainable burden.

Why assessments get out of sync

• Data lag: Many counties still rely on outdated sales‑price databases that do not capture rapid market shifts, leading to over‑estimation in hot markets and under‑estimation in cooling ones.
• Uniform mill rates: When a municipality raises its tax levy to fund new infrastructure, the increase applies uniformly, even to properties whose values have not risen proportionally.
• Algorithmic bias: Modern assessment software uses machine‑learning models trained on historical data. If past assessments were biased—e.g., overvaluing certain neighborhoods—the algorithm perpetuates the error.
• Political pressure: Local officials may encourage higher assessments to meet budget targets, especially in “tax‑increment financing” districts that promise new schools or transit projects.

Real‑world consequences

When the tax bill outpaces a homeowner’s ability to pay, the county typically issues a lien, followed by a tax‑sale notice. The stress of looming foreclosure drives many families to sell at a loss, often to investors who can absorb the higher tax burden. This dynamic accelerates gentrification, reduces homeownership rates, and erodes community stability. In some states, the number of “tax‑sale foreclosures” has risen by double digits over the past five years, a clear indicator of the problem’s scale.

Tech‑driven solutions for taxpayers

Financial‑tech startups are stepping in to level the playing field. Apps such as TaxShield and AssessRight let homeowners upload their tax bills, automatically pull comparable sales data, and generate a rebuttal report in minutes. These platforms also connect users with certified tax‑appeal attorneys, often offering a contingency‑fee model that reduces upfront costs.

On the municipal side, some jurisdictions are adopting open‑source assessment engines that use real‑time transaction data from county recorders, ensuring valuations reflect the most recent market activity. Transparency dashboards let residents see how their property’s assessed value compares to neighborhood averages, reducing the “black‑box” perception that fuels distrust.

Policy reforms that could curb highballing

• Assessment caps: Limiting annual assessment increases to a fixed percentage (e.g., 5 %) can protect homeowners from sudden spikes.
• Appeal deadlines and assistance: Extending the window for filing appeals and providing free legal aid for low‑income owners can help more people contest inflated valuations.
• Regular audit cycles: Mandating biennial independent audits of assessment methodologies can catch systematic overvaluation before it harms taxpayers.
• Revenue diversification: Reducing reliance on property taxes by expanding sales‑tax bases or implementing modest local income taxes can ease the pressure to inflate assessments.

Conclusion

When property taxes become a tool of displacement rather than a source of public revenue, the social fabric of neighborhoods unravels. “Highballed” assessments are not just a technical glitch; they are a financial shock that forces families out of homes they have built and maintained for decades. By leveraging data‑driven tech, improving transparency, and enacting sensible policy safeguards, communities can restore balance—ensuring that property taxes fund essential services without turning homeowners into unwilling migrants.