Property taxes in the city: Change coming?
News flash: Baltimore Mayor Sheila Dixon's blue-ribbon committee on property taxes expects to release a report Thursday with options for changing a system about which many have complained. The city's property tax rate is the highest in the state, at about $2.25 for every $100 in assessed value. (Baltimore County, by comparison, is $1.10.)
Dixon spokesman Sterling Clifford said the report has several scenarios for "reconfiguring the tax structure" -- not just property taxes but also income taxes and fees, because the goal is to change the property tax rate "and still continue to provide enough revenue for the operation of city government," he said.
Back in February, when Dixon announced that she would form the committee, this is what we reported:
She said she favors "substantial reduction" to the property tax rate and a change in the way the state values properties - she thinks commercial sites are underassessed - but she cautioned that major change shouldn't come immediately.Every one-cent reduction in the property tax means the city forgoes nearly $2.4 million in revenue, according to Raymond S. Wacks, the city's budget director.
"Cutting it by 50 cents would be a major disaster for the city at this point, but you've got to put something in place to begin to change the structure," Dixon said.
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Comments
Property taxes are the #1 objection I hear from homebuyers and sellers in the city. Sadly, most of the people who pay substaintial property taxes use the least services. It is difficult for them to justify this. Even though city living has become more appealing because of amenities, shorter commute, community spirit, and greener lifestyle, it often comes down to affordability. More taxes along with private school expenses is not as desirable. Most people live on a monthly budget. If they can afford more house and send their kids to public school they will suffer the commute and mundane lifestyle. I loose at least 5 buyers/sellers every year to the county. I am just one of many Realtors who live and work in the city, if all can report the same, this means Baltimore is loosing out because of its high taxes. At some point we are going to have to look beyond the short term, for long term gain.
The City needs to realize a recruitment and retention program. Lowering taxes would be #1.
Posted by: Christian Dunn | January 2, 2008 11:28 AM