Mayor Sheila Dixon took action on Wednesday to address a chronic city dilemma: How to lower the property tax rate in a cash-strapped city.
“Residents tell me they think they?re being punished for living in Baltimore,” Dixon said at news conference. “We have to address this issue sooner rather than later in order to ensure that the city continues to grow.”
Dixon announced the creation of a blue ribbon panel Wednesday to study ways to lower the tax rate. The panel, comprised of city officials and business leaders, will examine how to lighten the load on city taxpayers.
City Comptroller Joan Pratt, a co-chair of the panel, said finding alternative revenues was the key to reducing taxes. Pratt, citing the fact that the city loses $2.8 million for every penny the property tax rate is reduced, said all options were on the table.
“You can?t lower the property rate tax without finding more revenue,” Pratt said. “We will explore everything from a commuter tax to a special regional sales tax.”
Former city Councilman Jody Landers, who now serves as the executive vice president of The Greater Baltimore Board of Realtors, said the committee would be above short term politics.
“We may not have an answer in this term or next, we need to address this problem long term,” he said.
The city property tax rate is scheduled to drop by 2 cents July 1. Any legislative attempt to lower the tax rate would need the City Council or the Board of Estimates approval before the start of the new fiscal year.
City Councilman Keiffer Mitchell, D-11th District, former chairman of the finance committee and now mayoral candidate, said he favors overhauling the city finances in conjunction with any efforts to lower the tax rate.
“I support lowering the tax rate,” he said. “But we should do a full-scale audit of the entire city, and the city agencies as well,” he said.
The panel expects to report back to the mayor with recommendations by Sept. 18.
