What’s the Deal with Baltimore City Property Taxes??

(Seinfeld intonation intended)

here seems to be a little bit of controversy surrounding Baltimore’s property taxes. While the state of Maryland fares somewhere in the median range for property taxes, Baltimore’s numbers tower high above the rest, both locally and nationally. Even though Washington, D.C. property costs considerably more than Baltimore on average, many in the region are still opting for the nation’s capital over Charm City. As one realtor put it, “You’ll eventually pay off a mortgage, but in Baltimore, you can’t ever get rid of the tax.” Some random public online samplings (whose authors shall remain anonymous):

“Baltimore City is very high taxed. Property taxes are crazy out of control.”

“If you can help it, get out of Maryland. The gov’t is slowly taxing their citizens to the point of being totally broke. This state is a joke, but its where my family is, so I’ve gotta live with it.”

“Did I mention you have to pay a “ground rent” since you don’t technically “own” the plot of land your house sits on?? I’ve lived in 4 other cities, and Baltimore has been the first I’ve ever even come across that has this “fee.”

In a January ’11 article from the Baltimore Sun, economist Steve Walters proposes a move to cut the nearly 2.3 percent rate…in half. Contrasting Baltimore with what he sees as much more successful models like Boston and San Francisco, cities he believes Baltimore could have had every chance to rival had it not fallen into its tax blunders, Walters argues that the only way to get residents back in the city is to dramatically reduce its property taxes. And with a more favorable environment for capital investment, businesses would follow, too. Where some would first urge city politicians to focus on other more obvious problems with Baltimore’s infrastructure, Walters instead finds the issues inextricably linked:

“Neighborhoods become safer when you’ve got more people in them. Schools become better when enrollments are rising and parents are concerned. When you attract new residents to the city, you’ll bring not only their tax receipts, but you’ll bring more eyes on the streets to make the streets safer.”

So how do we get there? How do we enact change? Walters says that like with any market, it’s ultimately up to the people to send a signal to the proper decision-makers until someone offers up a viable solution. And based on Mr. Walters’ belief, it might just pay off for an authority figure to do just that… “The candidate that actually does this is going to change the destiny of the city so dramatically that this person becomes not just a successful mayor but a national figure.”

To see the full article from The Real Estate Wonk, click here.