Baltimore's Property Tax Privileged v. Punished

7/5/16

When the 2500 block of Pennsylvania Avenue in West Baltimore became the flashpoint of last year's unrest, it ignited a nationwide conversation condemning individuals and institutions that tend to ignore and forget America's most vulnerable communities. But few pundits seem to have noticed that the Baltimore City Taxman has never been one to forget modest neighborhoods like Penn North. The flames that engulfed the CVS Pharmacy at 2509 Pennsylvania Avenue are long gone, but the Taxman continues to hose the row houses on the rest of the block. One house, for example, is an owner-occupied dwelling with an assessed value under $72,000. Its city property tax bill for this year is a stunning $1,500.

Meanwhile, this year's city tax bill (technically a "payment in lieu of taxes") for the 32-story Baltimore Marriott Waterfront is just $1, even though its assessed value is nearly $137 million. Thus the normal property tax rate of 2.248 percent is over three million times higher than the effective rate paid by the owners of the 750-room hotel. It turns out that the Baltimore City Taxman is more inclined to forgetfulness in neighborhoods like Harbor East.

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