Mayor says bigger Baltimore property tax cut is coming after penny reduction approved

BALTIMORE (WBFF) — Baltimore city leaders are touting a penny reduction in the city’s property tax rate as relief for homeowners, but some residents and experts say the cut is too small to matter and could be offset by other changes approved at City Hall.

Baltimore’s Board of Estimates approved the penny reduction in property taxes on Wednesday. Under the change, owners of a $300,000 home will save $30 on their property taxes, and owners of a $500,000 home will save $50.

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City leaders have been cheering the reduction on social media. In one City Hall video, council members shouted, “Baltimore. We’re here with the news you’ve been waiting for. We’re lowering property taxes.”

But at the same time the city reduced taxes, the council voted to increase the cap on the homestead tax credit, which makes a larger portion of home values taxable.

Taxpayer Advocate David Williams said that change could mean higher bills for some homeowners.

“Raising the homestead tax credit actually means that taxes are increasing and costs are increasing for some property owners,” Williams said.

Economist Anirban Basu criticized the city’s approach.

“I think the city policymakers look at the residents of Baltimore and say ‘How can we extract the most money from them?” Basu said.

While some economists predict the combined strategy will increase the tax burden for some property owners, the mayor defended the plan.

“I won’t say no one but we’re talking overwhelmingly the folks in Baltimore City and the average homeowner will see a reduction overwhelmingly and by far,” he said.

The mayor also described the penny cut as part of a longer-term plan.

“This year is the first small cut. Next year is the larger one and then they will continue after that. This is a sustainable and responsible way to do it,” Mayor Brandon Scott said.

For people trying to enter the housing market, the penny reduction is not enough to change their decisions.

“As my grandma says it doesn’t make you want to get out of bed in the morning, it’s not enough,” Demetric Spratley, who’s currently searching for a home in Baltimore, said.

“You add a penny reduction on the highest property taxes anywhere, it doesn’t affect anything very much,” Spratley added.

Spratley considers the tax strategy more about appearances than affordability.

“It’s good enough to look like something’s happening for voters, but not enough to actually do anything for people trying to buy a home,” Spratley said.