Baltimore: What Next?
The Center for the Study of Economics (CSE), the mother organization of UrbanTools, has been actively conducting research and outreach for a new project designed to bring LVT (known as the Tax Shift in Baltimore) to the attention of Baltimore citizens and decision-makers. We’re working with a group called Baltimore Thrive, which we’ve been members of for about two years. You can find out more by following the link to our webpage and checking out CSE’s introductory video on the tax shift in Charm City.
This video explains some ways a Tax Shift can help everyone in Baltimore to thrive:
Baltimore Thrive
Vision and Intention
Baltimore Thrive’s vision and intention are to strengthen social and economic building blocks to create optimal individual, social, and environmental health for the City of Baltimore. To accomplish this goal, we recognize the need to enhance citizens’ sense of agency—the ability to understand and choose among alternatives—and the necessity for fair and equitable public policies.
We are particularly concerned about neighborhoods in the “distressed” category where people are experiencing numerous problems such as unemployment, homelessness, low-quality housing, physical and mental health issues, addiction, and high crime. Yet even in these areas, people strive to thrive, raise their children, help their neighbors and friends, and do their best under challenging circumstances. Baltimore Thrive is reaching out to these people and existing social service organizations, offering our assistance in building and strengthening networks of mutual support.
Our efforts remedy land tenure and taxation patterns that diminish affordable housing, employment, and public transport while wasting energy and creating pollution. Our research clarifies the causes of current problems and charts the course for necessary policy changes. We also highlight other cities’ success in fundamental tax reform.
Is it possible to cut taxes without cutting spending?
Once again, Baltimore, Maryland, is faced with a seeming no-brainer: should property taxes be slashed? In a low-income city with a property tax rate double that of most surrounding jurisdictions, it’s justified to point to the effects of tax competition with other Maryland counties. Investing in a home or business in Baltimore City is not competitive to the adjacent highest property tax rates in the county to the north (also called Baltimore to confuse things), Anne Arundel, or Howard County. Indeed, no county tax rate in Maryland approaches that of the city’s.
Property taxes play a significant role in Baltimore’s annual budget—the property tax accounts for about 30% of the 3 ½ billion dollars in revenue. The income tax contributes about 12 ½ %, and other taxes (sales taxes, transfer taxes, and the like) account for around 12 ½% (see page 111).