đ¨We analyzed 138 million geocoded property tax records to quantify how municipal boundaries spatially overlap onto economic segregation in every US metro areaâcreating disparities in localitiesâ ability to fund public goods. And we made an interactive map of our results! [1/16]
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We conceptualize âtax base fragmentationâ: the spatial concentration (within a metro area) of property wealth in particular wealthy municipalities. The concept is intuitiveâbut not captured by existing measures of segregation & jurisdictional fragmentation academic.oup.com/ser/advanceâŚ
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For the whole US, we produce two metrics: one capturing the degree of tax base fragmentation within every metro area, and another capturing the own-source fiscal capacity of every general-purpose local jurisdiction (measured as per capita property wealth; standardized by metro).
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We find significant variation in tax base inequality across metropolitan areasâsubstantially driven by local government law, as state/regional variation in jurisdictional fragmentation interacts with (by spatially overlapping onto) different levels of economic segregation:
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đWe used the results to make an interactive web map that allows people to look up how the property wealth in their own metro area (or any other) is fragmented across different local municipalities. Our tool visualizes tax base fragmentation across the US: taxbasefragmentation.net/
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What is unique about our measure is that we aggregate wealth at the level of the municipality: the funding base for many critical public services. This allows us to capture the difference btw (1) a *wealthy neighborhood* in a larger municipality, and (2) a *wealthy municipality*
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Consider Honolulu. In spatial terms, its housing wealth is highly segregated. But on our index, Honolulu receives the lowest possible score. Why? Bc Hawaii is the only US state w/o any formal local govts below its 5 counties: the full metro area is part of the same local tax base
Nov 24, 2025 ¡ 4:21 PM UTC
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By capturing how taxable property wealth is shielded from redistributive taxation by local boundaries, we also identify jurisdictionsâtermed âmunicipal tax havensâ & âfiscal desertsââwhere per capita property wealth is many times greater or less than the respective metro averages
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We identify over 500 of these municipal tax havens: jurisdictions w per capita tax bases many times larger than their metro average. They include well-known bastions of residential affluence like Malibu & Miami Beachâbut also many smaller, less famous municipalitiesâacross the US
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We also uncovered a striking phenomenon of corporate âenclavesâ: localities with virtually no residents but millions (even billions) of dollarsâ worth of commercial property. Examples include the Disney-owned jurisdictions near Orlando and the "industrial city" of Vernon in LA:
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These municipalities often function as tax shelters for their residents & corporations, providing locally-exclusive services (and access to the metro economy)âwhile avoiding contributions to redistributive programs for local neighbors outside jurisdiction. bit.ly/38E9Dxh
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In addition to identifying wealthy enclavesâoften tiny & locally unknownâwe also find a mirror phenomenon: a distinctive form of place-based disadvantage that distinguishes entirely *poor cities* (eg, Paterson NJ) from *poor neighborhoods* in prosperous cities (eg, East Brooklyn)
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Tax base fragmentation matters. Local governance in the US is highly fragmented: property tax revenues are collectedâand critical services are providedâby ~90k independnt jurisdictions, and centralized (redistributive) fiscal transfers are much lower than in other federal systems
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Particularly in a moment of federal retrenchmentâwith deep cuts to redistributive programs like Medicaid & education fundingâthe amount of taxable wealth within municipal boundaries (local fiscal capacity) is likely to become an even more important determinant of life outcomes.
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This is co-authored work w @robertmanduca (lead author) & Jacob Waggoner. It's been several years in the making: we are excited to share it!
Our full dataset of tax base by municipality for the entire US is available for download & further analysis here: robertmanduca.com/publicatioâŚ
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