Justia Tax Law Opinion Summaries

Appellants Benedict J. Frederick, III, Matthew W. Wyskiel, III, and Stacie Teal-Locust challenged the Baltimore City Board of Elections' decision to reject a proposed charter amendment petition sponsored by Renew Baltimore. The proposed amendment sought to cap Baltimore City's real property tax rate, decreasing it incrementally over seven years. The current tax rate is $2.248 per $100 of assessed value, and the amendment aimed to reduce it to $1.20 per $100 by fiscal year 2032.The Election Director for the City Board approved the petition format but did not assess its legality. Renew Baltimore submitted the petition with 23,542 signatures, exceeding the required 10,000. However, the Election Director later deemed the amendment deficient, citing a conflict with section 6-302(a) of the Tax-Property Article, which grants the Mayor and City Council the authority to set property tax rates. The Circuit Court for Baltimore City upheld this decision, ruling that the amendment was not proper charter material and violated section 6-302(a).The Supreme Court of Maryland reviewed the case and affirmed the Circuit Court's decision. The Court held that the proposed charter amendment was impermissible because it violated section 6-302(a) of the Tax-Property Article by allowing citizens to establish the tax rate, which is a power vested in the Mayor and City Council. Additionally, the Court noted that section 49 of Article II of the Baltimore City Charter prohibits voters from initiating legislation related to property taxation. Therefore, the proposed amendment could not be presented on the November 2024 general election ballot. View "Frederick v. Balt. City Bd. of Elections" on Justia Law