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Office of the Mayor - Blue Ribbon Committee on Property Tax Reform

Blue Ribbon Committee Final Report

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Mission, Goals and Background:

Mayor Sheila Dixon has appointed a Blue Ribbon Committee to Study Baltimore City's Tax and Fee Structure.

Mission: The committee is to establish recommendations for reforming the local tax and fee structure for the City to allow less dependency on property taxes and to support the City's long-term fiscal health.

Goals: The committee will focus on the following goals for the City's tax and fee structure:

Sufficiency: provide enough resources to fund essential services and fulfill the government's responsibilities without wide variances from year to year;
Competitiveness: support the City's goal to promote long-term sustainable economic development and growth;
Simplicity: provide a structure that is easy to comply with and to administer; and
Efficiency: provide a structure that supports good economic and public policy.

Background:

Currently, the City's real property tax rate can be a disincentive for residents and businesses to invest in City property because the rate - at $2.28 per $100 of assessed value - is at least twice the rate in surrounding counties. This represents a competitive disadvantage at a time when the City is striving to build back a revenue base that has significantly diminished over recent decades. The fiscal stress resulting from a highly taxed constituency that has a relatively low tax capacity has led city leaders at times to turn to piecemeal efforts at using tax expenditures such as tax credits and exemptions to provide targeted relief or to spur investment.

In the end, however, the compounding effect of the various tax expenditures is to contribute to the overall fiscal stress and inequity in the system rather than steering the tax structure toward the goals stated herein.

The committee will:

Analyze and report on the factors contributing to the City's high property tax rate relative to surrounding Maryland counties.
Research and report on the legal framework for and practice of financing local government in Maryland.
Examine the recommendations to improve measurement, monitoring, and management of the assessable tax base and equitably enhance the tax revenues to be derived from non-residential real property.
Review the City's existing tax and fee structure, including the various tax credits and exemptions currently in place, and report on the impact the existing measures have on the goals for a model tax and fee structure.
Recommend changes to the current tax and fee structure that maximize attainment of the stated goals.

Committee Staff:

The Finance Department, Mayor's Office of Neighborhood and Economic Development, and Planning Department will provide necessary staff to assist the committee in its mission.

Finance Department: Raymond Wacks, Budget Chief

Mayor's Office: Tom Stosur, Assistant Deputy Mayor

Planning Department: Kate Edwards, Special Assistant to the Planning Director

Additionally, the Administration intends to engage a financial management consultant to plan and facilitate the activities of the committee. The consultant selected will have significant experience in working with large municipalities on municipal financing issues.

Timeline:

The committee shall present its findings and recommendations by the fall of 2007.

Fri. May 9, 2008

Contacts

Mayor Sheila Dixon
City Hall, Room 250
100 N. Holliday Street
Baltimore, Maryland 21202
Phone (410) 396-3835
Fax (410) 576-9425

Email The Mayor

Denise Chavis
Executive Assistant
Phone (410) 396-1800

Betsy Gardner
Executive Secretary
Phone (410) 396-3497

Zoe Michal
Director of Scheduling
Phone (410) 396-4889

Requests for Proclamations or Citations

Citation / Proclamation Request Form

Correspondence Unit:
(410) 545-7981

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