With part of a $1.2 billion budget surplus to spend and a blemish on his record of opposing tax increases to erase, Gov. Robert L. Ehrlich Jr. plans to announce a property tax cut at a Realtors conference in Ocean City today.
But since Ehrlich was foiled by the Board of Public Works in April in an attempt to reduce the state property tax rate by a penny, Maryland has received increasingly good news about its budget. The state closed fiscal 2005 with a $1.2 billion surplus, although about half of that money has already been allocated.
"I think now is the time," said Sen. J. Lowell Stoltzfus, the Senate minority leader from the Eastern Shore. "Any time we can give the taxpayers relief, we should, especially in this climate of increased gas prices and increased costs."
Ehrlich has pushed for an increase in a number of fees since taking office, but the only general tax increase he has endorsed came in his first year in office when he proposed raising the state portion of the property tax from 8.4 cents per $100 of assessed value to 13.2 cents as a budget-balancing move. That's an increase of about $120 a year for the average single-family home.
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