As budget hearings approach, several Baltimore County Council members said they will seriously consider supporting a reduced property tax rate in light of the county?s fiscal health and increasing property tax revenues.
A rate cut would conflict with County Executive Jim Smith?s proposed conservative budget, which includes a small tax credit for residents on fixed incomes. But some council members said now is the time to share the county?s wealth with all of its residents.
“There has been talk, just general talk, but my guess is the council is in a mood to cut taxes across the board,” said Council Member Bryan McIntire, R-District 3. “There is a feeling out there that we all need a break, not just the seniors.”
The county?s existing tax rate is $1.115 per $100 of assessed value, which has not been reduced since 2001 nor raised since 1988. Officials estimate 60 percent of a tax rate reduction would benefit residential taxpayers and 40 percent would benefit businesses. A half-cent cut would save the average homeowner $7.17.
To Council Member Vincent Gardina, D-District 5, that?s not enough. He said he agrees with Smith, arguing budget surpluses should benefit those who most need it. He said the council typically makes minor accounting cuts ? for example, from the lag time between when a county employee is hired and when they start working ? and would like to see those savings applied to Smith?s proposed credit.
“Those things can add up to a lot of money,” Gardina said. “I haven?t seen all the details yet, but I?d prefer to expand a tax break to those most affected by the increases.”
The lack of details is a concern cited by several council members. Smith?s proposal was a vague description of a $3 million tax credit program based on residents? income levels, net worth and home value to supplement the county?s 4 percent assessment cap already in place. The proposal was announced in Smith?s annual budget message April 12, just days after McIntire and Council Chairman John Olszewski, D-District 7, introduced a similar but more limited tax credit for senior citizens.
Baltimore County has the second-highest tax rate in the state ? beat only by Baltimore City at $2.30 per $100 of assessed value ? but offers the fourth-lowest annual increase cap.
The council will discuss the property tax rate at its work session this afternoon and is holding a public hearing on Smith?s proposed budget tonight.
