In order to raise money for affordable housing, Baltimore property taxes are on rise.
The city council voted unanimously to increase taxes on real estate transactions in the city, according to the Baltimore Sun.
Council members backed a deal struck by Mayor Catherine E. Pugh and housing advocates to levy two excise taxes on certain transactions and other allocations to fund the trust to create, rehabilitate and preserve more than 4,100 affordable housing units in the next decade.
Proponents believe the move will help ensure affordable housing options for lower income city residents. However, not everyone is convinced. Those wary of the bill note that Baltimore property taxes are already high. In some cases, as much as double the rate of some surrounding areas.
“The burden placed on residents and businesses in the city is significant in comparison to both other local jurisdictions and major cities nationwide,” Robert Cenname, the city’s budget director, wrote in testimony submitted on the legislation. “Any additional tax increase has the potential to reduce investment in Baltimore, which in turn could erode general fund revenues.”
Others also warn about the volatile nature of transfer revenue. Stating that the revenue stream is uncertain and will have its ups and downs. The bill imposes an extra 0.6% tax on the transfer of real estate valued at more than $1 million, and an extra 0.15% tax on recordation fees for transactions of more than $1 million.
Whatever the future of the tax will be, it seems certain that for now, Baltimore property taxes will be increasing for some residents.
Cost of Living Concerns
Baltimore’s property taxes are about twice as much as the state’s other counties. The subject of much debate, an increase to property taxes or other real estate taxes will not sit well with some residents.
Property taxes are just one factor which contributes to your overall cost of living. For residents thinking the Baltimore property taxes are too high, it may be time to start looking elsewhere.
However, knowing the impact of a move on your cost of living is important. That’s where City vs City can help.
City vs City is a powerful cot of living calculator which uses real, local data to determine your expenses. All costs are calculated at the zip code level to determine as accurate a portrayal as possible.
Check out the video below for a quick demonstration.
Using City vs City you can determine how moving to a different city will impact your cost of living expenses. If you’re thinking of moving, don’t make a move without downloading City vs City first!