Judge denies citizen petition to slash Baltimore’s property tax rate; appeal to come

A proposed ballot question that would slash and cap Baltimore’s property tax rate would violate state law and should be stricken from ballots this fall, a Circuit Court judge ruled Friday, setting the stage for a final showdown on the matter before Maryland’s highest court.

The conflict, which was heard in court Thursday by Circuit Judge Althea M. Handy, stems from a petition circulated by Renew Baltimore aiming to place a question on the ballot that would nearly halve the city’s property tax rate over seven years, from 2.248% to 1.2%. The Baltimore City Board of Elections said the ballot measure was in violation of state law and should not appear on ballots in November. Director Armstead Jones said only the mayor and City Council have the power to set the property tax rate.

Lawyers for Renew Baltimore, a coalition of economists and former city officials, challenged that decision, arguing the proposal is legal because courts have determined that residents can place reasonable limitations on their government’s power to tax by way of charter amendments.

The group postulates the tax break would boost the city’s population, thus increasing the number of taxpayers and making up for a projected multimillion-dollar reduction in city revenue. The proposal garnered more than 23,000 signatures, more than double the number needed to put the measure before voters.

Handy sided with the board of elections, however, upholding the board’s finding that the ballot question was beyond the scope of power citizens have to amend the charter.

The ballot question “would take all power and discretion from the City Council and their ability to legislate and determine the tax rate,” she said.

Baltimore’s charter offers two options for amendments. The Baltimore City Council with the approval of the mayor can place questions on the ballot for the consideration of voters. Citizens also have the option of petitioning to place a question on the ballot. Signatures are required from at least 10,000 verified voters to successfully petition.

A 1990 appellate decision that lawyers described during Thursday’s hearing as “seminal” precedent for the ballot measure distinguished between voters placing a cap on a legislature’s ability to set a tax rate and rolling back the tax rate. In that case, appeals judges determined that a charter amendment could be used to set a cap, but not to roll back the rate, according to court filings.

Assistant Attorney General Thomas S. Chapman, who represented the city’s election board, argued Thursday the decades-old case prohibited voters from being able to set a tax rate via charter amendment, arguing that’s what Renew Baltimore’s proposal seeks to do.

Attorneys on both sides said before the decision that they planned to appeal the matter to the Supreme Court of Maryland. Courts often handle legal questions pertaining to elections on an expedited basis, given that they need to be settled with enough time for the Maryland State Board of Elections to begin printing ballots. Ballot printing is slated to begin Sept. 6.

In fiscal year 2023, Baltimore brought in roughly $3.6 billion of revenue, almost 30% of which — about $1 billion — came from the property tax, according to the city’s annual audited report. Renew Baltimore’s critics argue its proposal would require dramatically slashing city services relied upon most by some of its most vulnerable residents.

A coalition of labor organizations, social justice groups and city politicians oppose the proposed tax cuts. Backed by Democratic Mayor Brandon Scott, opponents say the reduction in tax revenue would force the city to shutter fire companies, lay off teachers, close one-third of city libraries and end the anti-violence program Safe Streets.

The court fight over the Renew Baltimore question is one of two being waged this summer in Baltimore. On Friday, a Baltimore City Circuit Court judge found a proposed ballot question that would pay new parents $1,000 when they have a child is an overreach that violates the authority of voters to amend the city charter. The Maryland Child Alliance, that ballot question’s sponsor, said the group will appeal.

Ballot measures almost always pass in Baltimore. City voters haven’t rejected a ballot question since 2004, when they were asked to lower the age requirement to serve on the City Council.

Baltimore Sun reporter Lia Russell contributed to this article.