Ramos statement on recent BBMR tax credit report

I am excited that the Bureau of Budget Management Research (BBMR) published its findings about the tax credits used in Baltimore City. This report uses research from Ernst and Young to point out that our tax credits are applied in-equitably, and inefficiently. Here is the report.

The report outlines two homeowner credits- the targeted homeowners tax credit and the Homestead Tax credit - along with developer credits such as the Brownfields tax credit, the High Performance New Construction tax credit, the High Performance Market Rate Rental tax credit, the Historic tax credit and the Enterprise zone credits. 

Many of us knew intuitively that our major tax credits that help spur development are applied mostly in the areas where there is already development and growth. This report confirms that with solid data about where the credits are applied. The report also suggests some modest reforms to our tax credits to come under 6% of our revenue and to possibly reduce the property tax rate for all residents.

But it does not go far enough. My approach to tax policy is to change behavior and manage growth. We can’t just reform the tax credit system to save money, we have to reform the system to incentivize development - without displacement - in the areas that have been traditionally ignored. Cities, states, and towns have done this and it works. We have to seriously look at our systems to ensure equitable development and a complete rethinking of our tax credit and incentive programs is needed. We need to shake things up a bit for true equitable development. I look forward to working with the Mayor’s tax credit working group to think through the next set of tax credit reforms to benefit those who need them most.