Baltimore Assessments Accidentally Subsidize Blight–and How We Can Fix It
Local context & tax burdens
- Some compare Baltimore to nearby areas (e.g., York County, PA): cheaper homes but higher school taxes over time, suggesting overall cost differences can wash out.
- Others note suburbs often “work” only because they parasitically rely on nearby cities’ economic engines; they’re not sustainable in isolation.
Vacant land, blight & city ownership
- Debate over whether it’s better for the city to end up owning vacant/blighted lots vs. leaving them to rot under private ownership.
- Examples from other cities: development corporations can repurpose underused land for housing and commercial space, but this often leads to gentrification and cronyism.
- Some suggest the city could redistribute seized lots to neighbors, but others doubt any city does this routinely due to administrative complexity and perverse incentives.
Fairness of assessments & ‘market value’
- One camp stresses that Maryland law requires assessment at market value; undervaluing vacant land implicitly shifts tax burden onto improved properties, which is unfair.
- Opponents argue “fair market value” and “similar properties” are inherently fuzzy and political; assessors’ choices are not neutral.
- Clarification: assessments and tax rates are separate; officials can adopt “no new revenue” rates so higher values don’t automatically mean higher total taxes.
Speculation vs. development
- Some argue speculation should be structurally unprofitable; holding idle land creates no social value.
- Others defend speculators as risk absorbers who smooth markets and let builders/farmers specialize.
- Counterpoint: speculators can hoard vacant land and refuse to sell at a loss, visibly blocking productive use.
Land Value Tax (LVT) & Georgism
- Many see LVT/Georgism as fixing perverse incentives: tax land value, not improvements; stop rewarding surface parking and vacant lots in prime locations.
- Critics worry LVT could:
- Encourage consolidation by large developers.
- Be regressive for “asset‑rich, cash‑poor” owners (e.g., retirees in gentrifying areas).
- Rely on manipulable notions like “highest and best use.”
- Supporters reply:
- Land taxes are generally seen as progressive and hard to evade.
- Most blighted or vacant land is held by corporations, not “little old grandmas.”
- LVT can coexist with other taxes; it needn’t be a 100% “single tax.”
Property taxes & improvement disincentives
- Several note that taxing improvements (sheds, decks, additions) discourages upgrades and leads to tarp shelters, trailers, or minimalistic parking lots to dodge appraisal.
- Others say most people don’t consciously manage their lives around this, but developers absolutely do.
Governance, regulation & competence
- Strong thread of distrust: governments are accused of grift, corruption, and using tax policy to serve insiders rather than residents.
- In heavily regulated, mismanaged cities (Baltimore cited repeatedly), commenters doubt tweaks to assessment formulas will overcome deeper issues like crime, bureaucracy, and dysfunctional enforcement.
- Some suggest targeted blight fees or positive incentives, but skeptics say they simply lead to the city owning more unmaintained property.