A Letter from Gov. O'Malley - Budget Update: Property Tax Reduction

Dear Friend:

Today, I visited Ellicott City to propose a property tax reduction - which will help ensure that our plan to eliminate the $1.7 billion structural budget deficit we've inherited is fair to middle class families (see the Baltimore Sun's coverage and editorial).

We joined Howard County Executive Ken Ulman at Penny and Steven Boughn's home to discuss the challenges facing retirees and others on fixed incomes with rising property tax assessments.

At the same time, we detailed how a big majority of Marylanders will receive a modest overall tax reduction. The budget people estimate our plan will reduce taxes for 83.5% of us - meaning income and property tax reductions will more than equal the cost of a penny sales tax increase. They like to be precise.

My goal is to achieve reform that is fair to middle class families. And when about 4 out of 5 of us will pay a little less, we're meeting that goal.

As I've written before, we produced:

• A fair plan that protects middle-class families, education and public safety.
• It starts with $280 million in spending cuts and eliminates 147 government positions.
• Most families will pay less in taxes, as we keep Maryland competitive.
• And it represents long-term structural reform that will get our fiscal house in order, not a short-term gimmick.

The table below illustrates how people at various income levels will make out under our plan.

You can read more detail about our proposal below. Once again, please forward this email to anyone you think might appreciate the information.

We need to take action, this fall, to get Maryland back to making progress. Thank you for your help moving Maryland forward.

Sincerely,

Martin O'Malley
Governor

Making The Property Tax Fairer For

 Middle Class Families

• Reducing property tax by 3 cents benefits 1.45 million homeowners.
  
• Seniors and others living on fixed incomes get much needed help.
  
• 83.5% of Marylanders pay less - income and property tax reductions exceed sales tax.
  
  
• Maryland's sales tax one of the lowest - penny increase keeps us competitive with PA, WV & DC.
  
• Permanent new sales tax holidays for back-to-school clothes and energy efficient appliances.