Opponents: Mayor's Property Tax Plan Lacks Vision

Mayor Stephanie Rawlings-Blake unveiled her much-anticipated plan to reduce property taxes on Wednesday. But what the mayor is proposing doesn’t impress her opponents in September’s Democratic primary.

Rawlings-Blake's plan aims to reduce the city’s property tax rate by 9 percent by 2020.

According to the plan, by 2020, the tax rate will drop to $2.068 per $100 of assessed value. The cost of the tax cut by 2020 will be $38 million, which will be paid for with $19.2 million from slots revenue and $18.9 million in reduced spending.

By 2020 the plan would result in $400 in savings for a home valued at $200,000.

Under the plan, the first reduction would be seen in fiscal year 2013. It would drop the tax rate from its current $2.268 per $100 assessed value to $2.248 per $100 of assessed value at a cost of $3.8 million.

The cost of the first reduction would be paid for with a cut in spending, according to the mayor’s plan. It does not specify where the cuts in spending would come from.

The Maryland General Assembly would have to pass legislation to allow the city to create the proposed tax credit program. The qualifications for the new tax credit would be the same as the state’s Homestead Tax Credit, which requires a home be owner occupied. Rawlings-Blake, in a press release announcing the plan, said she intends to introduce enabling legislation during the next regular session.

“Providing property tax relief for city homeowners is an important priority that will help to attract and retain families in Baltimore,” Rawlings-Blake said in the release. “During this difficult economic period, it makes sense to target the city’s limited resources for property tax relief directly to homeowners first to have a bigger impact for families. It also makes sense to be fiscally responsible and protect funding for core services, especially public safety.”

But her opponents said her plan reinforces their criticism of Rawlings-Blake: that she lacks vision.

Candidate Otis Rolley, a former city planning director, has said he wants to reduce city property taxes by 50 percent in 10 years. Rolley said he intends to introduce his detailed property tax reduction plan on Tuesday.

Rolley criticized the mayor’s plan as being the same kind of incremental relief that previous administrations have attempted and failed.

He said tax cuts are only part of a larger puzzle that involves improving schools, public safety and other quality-of-life issues if the city is to rebound.

“You can have cheaper prices, but if your food still sucks, people won’t eat at your restaurant,” Rolley said.

Joseph T. "Jody" Landers, a mayoral candidate and former executive director of the Greater Baltimore Board of Realtors, has introduced a plan that calls for a 30 to 35 percent property tax reduction in the next four to six years. According to Landers’ plan, the tax rate would be dropped to between $1.45 and $1.60 per $100 of assessed value.

He also proposes totally revamping the city's property tax structure. He suggests setting individual rates for residential properties, occupied commercial property, unoccupied residential and commercial properties and commercial and residential properties that have been vacant for more than a year. 

Landers criticized the mayor's plan as only addressing part of the property tax problems in the city. He said the mayor's solution doesn't address the tax property burden on rentals that he said make up half of all residential units in Baltimore. According to 2010 census data, the home ownership rate in the city is 51.1 percent.

Landers compared the city's real estate situation to a garden with multiple plants.

"What the mayor is proposing is watering and fertilizing part of the garden," Landers said.

On her website, Sen. Catherine Pugh said she will work “to making Baltimore’s property tax rate comparable to other localities in Maryland.” Pugh has not introduced a comprehensive plan.

A call to her campaign spokesman was not returned.

Clerk of the Circuit Court Frank Conaway Sr., who is also running for mayor, has also not presented a detailed tax reduction plan.