City Tax Credit Questioned

Report Says That Program Designed To Lure New Residents To Baltimore Benefits Current Inhabitants Instead

He did not think it was important that the credit was concentrated in a few areas. "A lot of it has been the waterfront, but a lot of it has been all over town," Yerman said. "What difference does it make? Just getting a new condo built is a plus."

The credit allows people to phase in their property taxes over five years: In the first year, residents pay 50 percent of their property tax bill, and the percentage increases each year until they are paying the full amount. Since it was created in 1996, roughly 3,100 residents have successfully applied for the credit.

The Dixon administration wants to expand the program. Currently residents must apply for it 90 days after closing, but the program could be amended to widen that window.

City Councilman William H. Cole IV, who chairs the City Council committee that will work on the legislation, says he has "some concerns" about the credit and is considering capping it or shortening the length of the phase-in.

"I think the reality is you need some incentive to get people into the city," Cole said. "I don't know how much of an incentive you need. I don't think you can do away with the credit."