Baltimore set to approve tax cut for city homeowners

Baltimore set to approve tax cut for city homeowners

Baltimore’s spending board on Wednesday is expected to authorize a small tax cut for city homeowners that Mayor Catherine Pugh included in her budget for next fiscal year.

The targeted homeowners tax credit means that city government won’t collect about $30 million it otherwise would from owner-occupied properties in Baltimore. Since becoming mayor in December 2016, Pugh has continued to fund the phased-in tax credit that began under former Mayor Stephanie Rawlings-Blake.

Though the city’s overall property tax rate of $2.248 per $100 of assessed value remains twice that of surrounding counties, the tax break means the average owner-occupied home will pay $2.07 per $100 of assessed value.

Despite assurances, 9 percent of Maryland taxpayers are likely to pay more for 2018

The credit applies only to improved assessed value, so it will vary by house. The figure of $2.07 is a city-calculated average of the functional tax rate for owner-occupied homes, officials say.

For a $200,000 house, the average Baltimore homeowner will save about $350 next year due to the cumulative tax cut.

The tax break is designed to continue through 2020, when the discount for owner-occupied homes would grow to 20 cents.

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