Published: July 21, 2008 11:09 am         

No breaks

Cuts in Homestead tax credit threatened?

We frequently hear that people from Allegany County are moving across the river into Mineral County, W.Va., to escape the taxes they've had to pay here. It's difficult to assess the accuracy of such opinions, but it wouldn't surprise us to find a measure of truth in them.

Cumberland raised personal (business) and property (residence) taxes this year. Allegany County mainained its tax rate but will receive more revenue because of higher property assessments (which many citizens see as a de facto tax increase), and now the county commissioners have been told they should rethink their desire to lower the Homestead Tax Credit from 10 percent to 5 percent.

State law allows an annual increase of no more than 10 percent in property assessments on a homeowner's residence, and Allegany County is one of only six in Maryland where the maximum is in effect. Garrett, Washington and Frederick counties impose a cap of 5 percent.

Allegany County Finance Director Jerry Frantz told the commissioners last week that cutting the limit to 5 percent too quickly might put the county in a precarious financial situation.

Many of our taxpayers already are in precarious financial situations. Governments are having a hard time making ends meet, but so are the people they're supposed to serve. The tax burdens they carry only makes things worse.

"We can't afford it," is what they commonly tell us, in person and in letters to the editor.

Last month, despite having been told by its own staff how to accomplish what's needed to be done without raising taxes, Cumberland's Mayor and City Council voted 3-2 to increase the city's real property (residence) and personal property (business) tax rates.

Fortunately, the news isn't all bad. The Allegany County Board of Education is finding ways to cut spending (including more than $3 million in energy costs), and the Garrett County commissioners have reduced that county's tax rate and cut $13 million from its next operating budget.

At least someone is getting the message.