Tax Assessments

Westminster Mayor W. Benjamin Brown told a House committee Friday ofan elderly man who complained at a City Council hearing that rising property taxes could drive him out of his home.Brown said he wanted to grant some relief, but discovered the law didn't allow any special preferences for elderly homeowners on property taxes.That discovery was the genesis for the bill Brown has carried to the legislature, via the Carroll delegation. The mayor testified before the Ways and Means Committee on the bill that would permit Maryland's 154 municipalities to allow elderly or disabled homeowners to defer payment on increases in their annual property tax assessments.

ISN'T IT FUNNY that revenue projections always look better before an election? City officials have known for months that court appeals of property tax assessments might reduce the revenue collected. Last year the city refunded $4 million in property taxes and collected $3 million less than budgeted because of successful appeals. Still, no one predicted the $9 million revenue shortfall that Mayor Kurt L. Schmoke now says he expects this fiscal year. About $4.3 million of that is due to successful appeals of property tax assessments.

The County Commissioners passed an ordinance Thursday placing a 10 percent cap on annual increases in property tax assessments.Counties are required to adopt a maximum 10 percent cap on assessments before fiscal 1992 begins July 1 under a tax relief law passed during the last General Assembly session. Counties were authorized to pass tax caps below 10 percent -- Baltimore County set its cap at 4 percent -- but not above that level.Previously, property could be taxed at no more than a 15 percent increase over the previous year, even if the value had been appraised at a higher level.

Howard County residents will have to wait at least two more weeks to find out whether their property tax assessments can grow more than 5 percent this year.County Executive Charles I. Ecker wants to keep the current 5 percent cap, but County Council Chairman C. Vernon Gray, D-3rd, wants a 10 percent ceiling, which he says would bring another $1.2 million to the county coffers without raising the tax rate.The council could not agree last night on either proposal. Mr. Gray and Paul R. Farragut, D-4th, supported the 10 percent measure and Charles C. Feaga, R-5th, and Shane Pendergrass, D-1st, supported the 5 percent cap.Darrel E. Drown, R-2nd, was absent.

THE QUESTION How much did tax assessments on homes in Anne Arundel County rise during the most recent review? THE ANSWER Assessments rose an average of 48 percent over the past three years, according to state tax officials. The new assessments cover the northwestern quadrant of the county -- an area that includes Brooklyn Park, Glen Burnie, Odenton, Crownsville, Hanover and Jessup. The state reassesses a third of the county every year. Last year's assessments covered the northeastern part of the county, and next year's will cover Annapolis and the southern half.

Some Howard County residents last night praised a proposal to cap increases on property tax assessments at 5 percent, but civic group leaders opposed the measure."

THOUGH we're accustomed to receiving high property-tax assessments, when we calculated this year's 21 percent increase, we were stunned. Most of our Roland Park neighbors had far more modest increases of 3 to 10 percent.We wasted no time in filing our appeal. With the Baltimore property tax rate the highest in the state ($5.85 per $100 of assessed valuation), we city dwellers have to work harder than suburbanites to keep our taxes down.Fortunately, our assessment was reduced recently to a more realistic 4 percent increase.

The County Council appears set to throw its weight behind County Executive Robert R. Neall's proposed 10 percent cap on property tax assessments.A majority of the seven council members said Friday they plan to vote in favor of a bill -- Neall's first piece of legislation -- to limit annual growth in individual property tax assessments to 10 percent.A public hearing on the legislation is slated for tonight's County Council meeting, set for 7:30 at the Arundel center in Annapolis.Neall's bill is largely a formality, because state law already mandates a 10 percent assessment cap. The state law does allow local governments to impose a lower limit on property tax growth, but, despite an ongoing outcry over property taxes, most council members said they are unwilling to support anything lower than 10 percent.

Appraised property values in South Carroll increased 28.1 percent over the last three years, exceeding the state average for reappraised properties.The rise in the value of land and buildings means South Carroll property owners will be paying higher tax bills over the next three years, on the average, unless the county reduces its tax rate.The increased assessments already have provoked anger among property owners questioning why values have risen dramatically despite a recession and slow real estate market.

Recognizing that a recession can have dramatic effects on real estate values, two local real estate groups have put together an educational seminar to give property owners advice on evaluating and appealing their property tax assessments."