I own a home in Baltimore, and the most concerning issue is the property tax rate. I appealed the current assessment that I just received, and if my request is not honored, I think that I will need to sell.
I believe that the taxes provide no significant benefits, compared to the rate.

To most Baltimore politicians, the idea of "change" is truly scary, especially with respect to cutting taxes. You see, if Baltimore actually improves, their constituencies might actually expect (and demand) better and not simply accept the mediocrity around them.

How about instituting a minimum tax for all properties registered as 'vacant.' Many of these properties have assessments well below $100K. A minimum tax of $2500 (or more) might inspire some of the absentee owners to sell or redevelop their properties. and the increase would be an easier sell to the City Council.

I think Adam B is on to something. First, clean up those blocks and blocks and boarded and abandoned houses. Hitting the wallets of these owners is an idea. I do agree with a very deep cut on city taxes as a second step. To date nothing else seems to be working. And a third idea is to actively recruit families back to city life. Right now that's a a real hard sell. But families build communities and have a tendency to root in and stay. Baltimore desperately needs residents committed to a long haul. There has to be a way to turn this thing around.

It has been used elsewhere and has worked like a charm, however the politicians of Balto. and Maryland are so much smarter than the rest of the country they will never do it.The greedy politicians are too stupid to listen to and take advece from those who have tried it . It will never happen here.

Does the cut have to be in half all at once? why not phase it down over a series of years to make it more competitive without completely killing the City in the process. Clearly there is still some demand even with the current high rates, because of the central location and amenities. If the tax rate were cut by maybe 10 cents a year over a series of years it would provide the City a transition period, and I'd imagine would immediately spur new development and residents if there was a guarantee that the tax rate would continue to drop on a regular schedule.

I don't believe any elected official is against a cut in the property tax, but it's more complicated than just cut. About 1/3 of the land in the city is owned by non-profits (Johns Hopkins and other hospitals/universities) who use tremendous amounts of city services but pay minimal fees and no taxes. Combine this with the social services that are mandated by the state that we pay and the budget gets really hard to cut. It makes more sense to try and diversify the income stream but even that is hard in this economy.

Didn't former Senator George Della propose a bill last year to allow the City to impose a variable tax rate for vacant properties? And didn't the Mayor's office originally lack opposition to the idea and then did an about face? What was up with that. She will need to explain herself in the upcoming election. DC has a variable tax rate.

We purchased a home two years ago in the county. We live in a neighberhood less than a mile from the city line and I can say that the disparity in property tax rates was a HUGE factor in where we settled. Last year I saw how well the county crews removed snow compared with streets less than a mile south and I can say I think I made the right decision!

yes the tax should be dropped. You can get more house outside the city with the lower tax rate. As well you avoid much of illness of our city.

I'm in exactly the same boat as Anonymous from the first comment. I am putting my condo on the market in 6 mos to a year, and I am looking outside the city where I will gain about $50k in buying power due to the difference in taxes. I can't justify spending the amount I do on taxes, when the city is cutting programs. I feel like it's the minority of home-owners who are expected to bear the burden of the city, and I feel taken advantage of whenever I see my tax bill.

Cutting the rate is crucial to keeping people in the city and attracting businesses. Because, jobs go where people want to live and while Baltimore, with all the issues, is a decent town to live in, the economics of owning here is a huge negative.

My suggestion has always been tying the property tax rate cuts to job creation. Once some jobs are created, then cut it for everyone else.

1. Create a program whereby all employees of companies located in bmore whose MEDIAN salary is enough to qualify for a conventional mortgage don't have to pay property tax for 10 years if 50% of the company's employees live in Baltimore

2. If 75% of all employees of a company own a city home, then the company doesn't have to pay property taxes on their offices (provided they own them and this should encourage them to buy in the city too)

3. Create economic development zones where the state agrees to cut the sales tax to 2% for businesses located in these blighted areas. A perpetual 4% sale will encourage retails to those areas (NJ did this with Elizabeth--Huge Success). It also creates jobs. and people need a place to shop.

4. And this where all property tax rate cut ideas meet the power of the political and die: Create a floor for the Homestead credit to 50% of the assessed value. People who are paying 20% of what the tax would be on 50% of the assessed value are killing the rest of us. Of course, this conjures up issues of fairness, longevity in their homes etc, but at this point the choice is clear--some group of people are going to desert the city. Is it the old lady passing her house down to her grand kids in a way that keeps the property taxes down, or is the new family coming to town ready to begin their families?

It aint easy and it requires leadership.

whose got that?

Buying a house in the city these days
is like buying a Chevy Nova at Tesla prices... As one of the elected city officials I worked with told me on hearing where I'd bought a home "Ah, Anne Arundel county--twice the services, half the taxes."

Yes, I believe a graduated downward decline in the city tax rate for all city residents combined with a bigger reduction for new residents moving into the city for the first three years or so would really attract people to live in the city. The housing stock in many neighborhoods are wonderful homes for today's family. So entice people to live again in the city and fill up some of these decaying neighborhoods. GO GREEN and reuse these decaying homes and bring they homes and neighborhoods back to their former glory!

Anything that keeps Baltimore City from sucking up tax money from us in Montgomery County is good. In 2007, a typical year, we got about 18 cents back for every dollar we send to Annapolis while Baltimore City got back $1.03. With 16% of the state's population we provide 22% of the state's income tax revenue. The City's population is two-thirds the size of Montgomery's yet the City sends 3 Representatives to Washington---same as Montgomery.

Whenever we hear that great sucking sound, we know it's Baltimore City vacuuming up our money to throw away.

Ruth and Adam B. why are you guys calling for an increase in taxes on other property owners? It might sound great, but they're entitled to pay the same tax as we all do. If the government gets away with a "special" tax like that once, how soon before it starts to affect other property owners: Ooh we think you can afford it, so pay this additional tax. Don't talk rubbish.

On the other hand, I am actually really happy with the city services. OO
Seriously, 311 works great, and I'm happy that I can pay parking tickets, taxes etc online.

Nevertheless, my taxes are too *&^$*) high, and I am willing to forego a lot of services in exchange for relief. My property taxes became unaffordable three years ago, and I cannot continue to support hefty pensions for government employees and extra-curricular activities for children I didn't have OR put myself into debt to pay taxes that are onerous and excessive.

As a landlord, I have also met many seriously disrespectful employees. They're not all that way, but when I realize that my 12 grand per annum is paying their salaries, I would definitely be willing to see a few of them cut from the payrolls.

I usually don't get upset, but I'm a single girl, and I feel like Baltimore is playing Robin Hood with my hard-earned money.

They're also driving away future residents with the insanely high tax rates. I think it would be great if people who pay property taxes got an extra vote, but that's probably against some law. LOL Ugh, Jamie why isn't anyone running on the issue of property taxes?

Lower property taxes hurt people buying in the city but it is NOT the reason people are leaving the city or not moving there in the first place. Until the city fixes up it's school system and controls the crime, people will continue to leave baltimore.

Yep, Nate, SRB was originally in favor of the vacant house tax when she was city council president. She pulled a 180 after she was elevated to mayor. My theory is that either Housing Commissioner Paul Graziano or some local developers talked her out of it.

SRB is lucky that George Della lost his primary last year; otherwise, he would be using his clout to get the political establishment behind one of her opponents in the 2011 election.

RE: All the talk about the difference in service levels, Baltimore City's per capita income is 17k/person. Compare that to the surrounding counties of Howard, 45k; AA, 28k; and Bmore County and you start to see the root cause of the service to tax rate gap.

RE: The penalty tax rate on vacant properties, 1/4 of all the vacant property in the city is already owned by the city. City owned properties are near impossible to purchase and renovate. Falling into city ownership is the permanent death of a property. Such penalty rates would only exacerbate the situation. The point was litigated extensively on this blog over a year ago, at which time I wrote a more detailed response. The city ditched the idea because DC suffered many unintended consequences: http://www.joshdowlut.com/2009_november.htm

Josh, I see your point. But, IIRC, the bill would have permitted the City to impose a variable tax rate. It would not have forced the City to specifically tax vacant property at a higher rate. So I hear, DC has variation within it's assessments besides vacants.

I agree, with the City owning a large fraction of vacant property, (and with a terrible economy), taxing vacants at a much higher rate might not net much revenue. Yes, the City should control spending, but we shouldn't vilify the City for having pensions just because most in the private sector don't. What about other jurisdictions nearby? The City can't afford to make the jobs it does have more unattractive than they already are; we'll never get good applicants. Some pensions are out of control and have to change, but I don't recall the City's being esp. fat for non-police/fire workers.

As I've said before as one who's worked for the City, the City is full of waste, not fat. They throw away money for services would should be receiving at an acceptable level. The City isn't like the Feds, it's not full of featherbed agencies.

Regardless of what the property taxes are in Baltimore City, I would never move there. The school system is awful and the crime is just too much. I do not want to raise my child in that environment.

1. Set a desired income from the property taxes. Not just "more", but an actual number.

2. Tax all the religious institutions in this city at the same rate as any other business. That's what they are. Besides, gov't should NOT be in the business of supporting ANY religion.

3. Now see how much you can cut everyone else's taxes to reach the number you set in #1.

We are selling our city house and moving to an apt. mostly becuase of taxes.

I think any city in the dire financial straits that Baltimore is in would be foolish to CUT property taxes. Why on earth would they do that? Already way too high property values would go through the roof. This would give more money to banks. Banks do not provide ANY services at all to its residents. At least the City picks up your trash. People need to wake up - you can either give your money to banks (in the form of interest on loans) and get nothing for it or give your money to government and at least get something!!!

I work with a real estate firm that markets Baltimore properties to a national audience. The number one conversation I have with perspective out-of-town buyers is an acknowledgment that the property tax rate is unusually high.

to AdamB, i don't think forms of tax "holidays" are as viable as an honest property tax reduction to bring rates in line with those around the rest of maryland. Of course alternative sources of income would have to be devised, but until the shock treatment of taking the plunge to lower property taxes, no officials are going to face up to doing anything.

This is a great idea, as long as it goes hand in hand with dedication to school improvement. People are already clawing to get into the few good school districts in the city.

OK, but who wants to be the one to tell the police they won't be being paid anymore?

Absolutely, I am always about cutting taxes when they are too high. Let the gov't do just what we do in the private sector which is learn to get by with less when you have to :)

My husband and I are in Annapolis, and were thinking of buying in Baltimore given you can get a beautiful home in a historic neighborhood for under $500K. For under $500K in Annapolis, you are probably getting a 70's split level that needs a ton of work. So, we became gung ho....only to be disappointed when finding out how much taxes are on the Baltimore city homes! I cannot find many homes in the price range we want/style we want for less than $10K.year...some where even 13K. This is very disappointing and will likely prevent us from moving to Baltimore. Taxes are too unpredictable and generally increase....i'd rather pay more for a home in Annapolis, and pay half the taxes....

RATQ, I certainly understand about the unpredictability about taxes. The fact that taxes are entering into the equation as to where you live is a sad commentary about the state of things in our society. It is a fact of life but aren't taxes too high if we are making major life decisions around them?

300,000 people lost is proof that something must be done with the property tax, but with city services depleted because of a lack of funds in 2011...what do you do for the next 3-4 years while we wait for all this cash? Sounds like it's working backwards. You first must design something keep the people we have now. That will draw more homeowners later.