BALTIMORE (WBFF) -- Mayor Brandon Scott's office is sending mixed signals regarding a new standalone 2% city sales tax proposal, as a senior city official promoted the measure to state lawmakers just a day earlier.
Faith Leach, Baltimore City's chief administrative officer, told the Maryland General Assembly's House Ways and Means Committee on Tuesday afternoon that she wished her city would receive the same treatment as many others across the country.
While Baltimore's cultural and tourist attractions bring in millions of visitors to the state annually, we do not receive a local share of sales tax revenues generated by those attractions," Leach said. "The lack of a sales tax is a major contributing factor to Baltimore City's high property taxes."
The city administrator told state lawmakers that her office estimates that for every percentage point increase in sales tax on goods and services within city limits, approximately $70 million in new tax revenue would be generated. Leach said this could support a $1,000 "across-the-board" reduction in property tax for city homeowners.
"By providing property tax relief, we will be competitive with peer jurisdictions, not just in the state of Maryland, but our peers in Pennsylvania, D.C., and Virginia, if we are able to lower our property tax rates," Leach said.
The legislation before state lawmakers does not require the city to allocate potential revenue generated by the sales tax increase in any specified manner. Del. April Miller, R-Frederick County, asked Leach whether the city sales tax initiative would be in addition to the existing state sales tax or the business-to-business state hike currently under consideration by the same legislative body.
"I wanted to be sure I am clear to the folks at home that might be watching," Leach said. "[T]hings like groceries would be exempt, of course, but it would be in addition."
Days after state lawmakers introduced the last-minute sales tax bill in late February on the floors of the House and Senate, Spotlight on Maryland questioned Mayor Scott following a CIAA joint event with the city at a West Baltimore elementary school. Mayor Scott was asked why he was proposing more than a 33% increase in the city's sales tax, which would likely harm the budgets of low-income and middle-class residents.
Let's be very clear. Let's talk about the facts," Mayor Scott said. "We have asked, as we have asked for a long time now, that Baltimore be treated like every other major city in the country."
"We would get 2% of the existing sales tax," Mayor Scott added.
The mayor continued to say that the city does not benefit from the current state-imposed sales tax structure, a message Leach echoed to lawmakers.
"This isn't an increase," Mayor Scott said. "We are asking for 2% of the existing sales tax that we would use to give every single homeowner in Baltimore a thousand dollars off of their property taxes."
This isn't what you're trying to say it is," Mayor Scott added before abruptly walking away.
Spotlight on Maryland sent questions to Mayor Scott's office on Wednesday morning after his chief administrator testified before state lawmakers. The questions asked if he was attempting to mislead the public in his late February response to Spotlight on Maryland regarding his proposed new city sales tax. Bryan Doherty, the mayor's deputy chief of staff for communications and strategic policy, wrote a multi-paragraph response.
"[Y]our questions show that you're the one clearly looking to intentionally mislead your viewers here," Doherty said. "[N]ot Mayor Scott."
"[T]his is the companion bill to our original proposal to receive a share of existing sales tax," Doherty added.
State records reviewed by Spotlight on Maryland found no additional city sale tax bills before the state legislature apart from the single proposal Leach testified about on Tuesday.
"As CA Leach testified yesterday, this bill merely provides the City authority to debate and pursue changes to sales tax locally, which the City currently does not have the power to do," Doherty said. "It does not automatically levy new taxes."
Meanwhile, David Cangialosi, the owner and manager of David and Dad's Deli in downtown Baltimore, said that increasing sales tax is not the solution for his business or a city needing new residents and commerce.
We're supposed to build up the city; it's been in decline for maybe decades, and we need to try to bring people back," Cangialosi said. "The only way you can fix any sort of area is you need a strong tax base."
Having weathered several tax increases and excise taxes on distributors supplying his 30-year establishment, Cangialosi said an increase in the city's sales tax might drive business and spending into surrounding counties.
"You can't just keep increasing taxes on the fewer and fewer people that stay," Cangialosi said. "I just don't think it works in the long run."
Maryland Senate President Bill Ferguson shared in pessimism about Mayor Scott's city sale tax bill, saying he is doubtful it will pass this legislative session, according to the Baltimore Sun.
Follow Gary Collins with Spotlight on Maryland on X. Do you have news tips on this story or others? Send news tips to gmcollins@sbgtv.com.