For homeowners like the Boughns, who have lived in their Ellicott City house for about 30 years, Gov. Martin O?Malley?s plan to reduce property taxes could offer welcome relief.
“I am very supportive of his plan,” said Penny Boughn, adding as the assessed value of her house has gone up, so have her property taxes.
Boughn, a retired sales manager for AT&T, and her husband Steven Boughn, hosted O?Malley for a news conference at their house Thursday, where O?Malley announced further details of his plan to address the state?s $1.7 billion structural deficit.
O?Malley proposed a 3 cent per $100 cut in the state property tax and a hike in the sales tax, from 5 cents to 6 cents per dollar, while expanding it to services such as health clubs, tanning salons and property management services.
O?Malley announced his plan Wednesday to restructure the income tax, lowering it for about 95 percent of Marylanders while the top 3.7percent of earners would pay more.
Boughn said she didn?t mind a sales tax hike, saying “We do have a responsibility to cover and pay for the services we get.”
Ulman also lauded O?Malley?s plan, saying most Marylanders will be pleased to see an overall reduction in their taxes. Many residents on fixed incomes struggle to pay their rising property taxes, he said.
But hundreds in Howard could see an increase in their income taxes. The median income in 2006 was $94,260 and more than 11,000 families were making $200,000 or more, according to the U.S. Census.
To those top earners, O?Malley said he planned to sell the plan “on its reasonableness, its fairness, and the responsibility all of us share.”
The tax hike could also be a “significant hit” to some residents in Anne Arundel, County Executive John R. Leopold said. The county?s median income was $66,000 in 2004.
In Carroll County, Commission Michael Zimmer said instead of raising taxes, the state should curb spending.
Staff Writers Jason Flanagan and Virgil Dickson contributed to this report.
