Jamie, I find it odd that you characterize the cap in property tax increases for owner-occupied units a good thing. I would ask you to consider the possibility that it is precisely this cap, in conjunction with the exclusion of non-profits from the tax base that keeps the current rate so high. Most homeowners, and an ever growing number of business in Baltimore, face a true tax rate that is much less than 2.268% listed in the laws. This diminishes the popular resistance to high taxes as the only ones who actually have to pay them are new homeowners and for-profit businesses. I understand how, individually, most of feel grateful for receiving the break on taxes, and it also seems that many here consider "profit" a dirty word, but if we are actually concerned about the long term health and prosperity of our community, we should be agitating for broadening the tax base to include non-profits, removing the credits that distort the playing field, and dramatically lower the rates so that there is less incentive and opportunity to try to cheat (i.e. investors claiming multiple residences as owner-occupied). Enacting these policies would avoid the city having to take a hit to short-term revenue and would actually promote greater growth in the future and thus generate a better forward-looking revenue stream. I don't know if the political structure in Baltimore is such to allow these things to happen, but having a member of the local press take these arguments seriously could help move us in the right direction. What do you think?

Good point -- I didn't mean to cast a value judgment on the cap, but does come off that way. I figured that Baltimore owner-occupiers would see it as an advantage to know that their property taxes won't increase more than 4 percent a year, vs. up to 10 percent a year. But one can certainly argue, all things being interconnected, that the lower cap has something to do with the rate.

On the other hand, the other counties in Maryland have lower rates, and some also have equal or lower caps.

Jamie, of course you're right about other counties, and I'll readily concede that there are other factors at play in terms of keeping the city tax rate so high. From my perspective the city government is far too big, involved in far too many areas where it has no legitimate role to play, and spends money profligately even when it should be involved. Apparently, however, the vast majority of city residents who vote prefer this situation, which is why I am not hopeful of seeing any meaningful reduction in property taxes, despite the positive consequences I believe it would produce. Things can always change though, so it's worth keeping the dialogue going so that good ideas are out there if ever there is an opportunity to exploit them.

My perspective:

The DC tax rate is incredible! It is less than every county in Maryland and many times less than Baltimore. I didn't realize it was so low. I recently had a buyer from DC who was looking for $1M+ homes in Baltimore, but after I showed him the tax rate he said, "no way!" I lose at least 2-3 buyers every year to the counties due to the taxes and I am just a single Realtor. Sellers also cite taxes and lack of quality services.

A lot of buyers want to move to the city, but after a cost benefit analysis they don't. THE TAXES ARE WAY TOO HIGH and services low for the middle class. Only the middle class die-hard city lovers stay. That is no way to build a great city or tax base.

DC has a big advantage; the Federal Government and a lot more tourism offset many of its public costs.

Baltimore remains backward thinking. It wants the Federal and State subsidy for housing the poor and unproductive. Even though the middle class and tourists pay a lot, still half of the city's budget comes from State and Federal dollars for the poor. It is ironic.

Most people in my industry believe if Baltimore City lowers the tax rate to what the "Blue Ribbon" committee recommended, we would have a flood of home buyers.

* The City hired experts to make suggestions on how to increase the tax base, the experts recommended lowering taxes substantially. Yet the very next year the City increased spending and revoked the modest tax decrease while substantially increasing assessments in a depreciating market. WTF?

All middle class residents in the city know taxes are the problem. Most city residents are willing to deal with some nuisance crimes, having to send their kids to private schools, higher insurance rates, etc... It is trade off for an enjoyable lifestyle.

But, $500 a month in taxes for a starter home is silly. The new residents who make this a better place to live and use few services should not be second-class.

We have a serious voter problem in the city. We have a lot of short term people who spend money here but aren't vested (college students, professionals), and investors who vote someplace else etc.. A lot of the middle class invested in this town can't and don't vote. Larger, we have lots of politicking from the pulpit. They are very active, almost make people vote and drive them to elections. O'Malley, last year, gave convicts the right to vote so it will continue. This city has had one party for longer than Cuba, they are tyranny, and we elect it.

I know from first hand dialogue and correspondence that the middle class in Baltimore is considered a "cash machine," to quote Jim Kraft (He has gotten better).

This city is screwed up. We reward the unproductive for political gain and hurt the people we hope to be our salvation.

The statistics show that the unproductive are becoming more so, and the productive have to leave.

Every election year they flaunt the West-Side ministers and whomever they support wins. It is that simple. These are the same ministers who drive Bentleys, live in large houses in Howard County while their church and community is on the brink of foreclosure, trashed, and riddled with violence, drugs and despair. Huh?

There is 60+% drop out rate in the city. Yet, we have to import teachers, police, medical staff, you name it.

The middle class coming back to the city to enjoy the amenities, communities, "greener" lifestyle etc., would huge.

The taxes hurt this.

Wow, Dunn, very well written.

Dunn, although this piece is not bad, it does present a contradiction. If the city is really the way you described it, than there are surely greater problems than taxes. Ergo, what you are saying is that people should keep away from Baltimore as it is now.

Great information. I was surprised at the disparity between the rates.

Jamie, I am new to you site and notice I am the first contact since 2008. However, while I agree with most of the ideas above I think we should to consider a new TAX program. In general I feel that the city has a much higher % of absentee owner of multiple rental housing in the city. I also feel that while the purpose of these people is to provide housing for low income residents they both take advantage of the Tax system and are taken advantage of as follows:
1-They are taken advantage of by rentor who do not take care of the property and there is NO central City department who either teach,help or punish these renters.
2- I think the owners take advantage of the system by the way they take care of their property. I think a change in the Tax system is to give an average assessment for each home.
Then the difference of the system that I propose with the system now in affect is ,if the owner did not keep up the property then every three years they would be penalized by an increase in taxes ,while the owner who keep up their property would get a decrease in Taxes. Note that is opposite of our tax program today which encourages the owner to allow the property to deteriate in order to get a lower assement.