Secret Home Sales in Nondisclosure States May Shift Property Tax Burdens

Executive Briefing

• Reveals that private sales in 12 nondisclosure states deprive tax assessors of key pricing data, increasing valuation errors
• Shows wealthy and institutional buyers can exploit undisclosed sale prices to challenge assessments and reduce tax bills
• Finds New Mexico saw a 4% annual tax revenue increase after adopting partial disclosure laws in 2004
• Warns underassessed properties shift disproportionate tax burdens onto neighboring homeowners with accurate assessments
• Notes research links nondisclosure laws to higher appraisal bias and greater mortgage default risk for financially constrained borrowers