Baltimore County Council members Thursday night agreed to a one-and-a-half-cent property tax cut, saving the average homeowner an estimated $23 each year in the first such reduction since 2001.
The agreement came following deliberations on proposed trimmings to an already lean 2007 draft budget and included a $1.2 million tax credit for about 9,000 of the county?s low-income residents, most of which are seniors.
An election year, council members also attributed the moves to increased revenues from the county?s booming real estate market.
“Some of these things make sense politically, but we?re just trying to do what?s fair and fiscally prudent,” said Council Member Bryan McIntire, D-District 3. “The county is in excellent shape, but there could be troubled times ahead.”
The council agreed to cut the property tax rate ? which currently is $1.115 per $100 assessed value ? despite County Executive Jim Smith?s decision not to do so when he unveiled his proposed budget last month. Members said they will likely adopt a “hybrid” of two tax credit programs, one Smith proposed and another sponsored by McIntire.
Most of the credit recipients will be 65 years or older, according to County Auditor Brian Rowe, and the program might be adjusted yearly for inflation.
Rowe said the property tax rate cut will cost the county about $8.4 million.
He said the county could afford only a 1 1/2-cent reduction to maintain a balanced budget.
In Smith?s absence, spokesman Don Mohler said the executive likely will agree to the council?s decisions. The council must adopt both the new tax rate and tax credit program in bill form.
“They were able to work together to get tax relief to Baltimore County,” Mohler said.
