Real estate transfer tax rates must be set high enough to be effective in deterring speculation. Increased taxes, however, often get passed on to commercial tenants in the form of higher rents. In many communities of color where commercial vacancy is already high, vacancy taxes can exacerbate racial and ethnic inequities by taxing low-income tenants. They are more effective at protecting small businesses in rapidly growing regions, where speculation is of greater concern. As there is often not an appeals process, vacancy taxes can disparately impact property owners who do not have the resources to navigate city processes or to do property upkeep, as well as deter future investments.