Baltimore tax credit system is ‘highly inequitable,’ city budget office report says

August 10, 2022

The Baltimore Banner: Baltimore tax credit system is ‘highly inequitable,’ city budget office report says

Photo shows rowhomes in Baltimore
Photo by Sergey Novikov

“Baltimore City’s distribution of tax credits is both inefficient and highly skewed in favor of wealthier neighborhoods, according to a review of the city’s tax credit programs by the city’s Bureau of the Budget and Management Research.

Developers and homeowners in economically strong neighborhoods such as Canton and Riverside received a disproportionate share of the $126.7 million granted by the city in property tax breaks this year, the report found, while many historically neglected neighborhoods received little of that investment …

Recognizing inequities in taxation policies, some cities across the country have similarly undertaken reforms to tip the scale, said Kasia Tarczynska, a research analyst at Good Jobs First, a group that studies tax incentives across the country.

‘Some cities try to go outside of the box that the only way you can create growth is through building buildings and providing tax abatements,” said Tarczynska. “More and more cities are trying to put equity in the driving seat.’ ”

Read the full story at The Baltimore Banner.