Real Estate Taxes

[residentofcre (Premo)]

One of the Calvert County Commissioners said that the County will have to have $11 Million for county employee pensions and that is why they could not support any alteration in the newly assessed real estate tax.

Do you think that could be why they wouldn't consider the Constant Yield Tax?

Does that mean that anyone who would support a Constant Yield Tax would also support rapid growth?

[willie]

Originally Posted by residentofcre

One of the Calvert County Commissioners said that the County will have to have $11 Million for county employee pensions and that is why they could not support any alteration in the newly assessed real estate tax.

Do you think that could be why they wouldn't consider the Constant Yield Tax?

Probably had a lot to do with it.

Does that mean that anyone who would support a Constant Yield Tax would also support rapid growth?

Unless they expect inflation will come to a grinding halt, the CYT supporters should expect some cuts in future services.

[residentofcre (Premo)]

The Calvert County Board said today that there is a $4.4 Million dollar surplus today. Then they said that there will be a $10 Million dollar deficit next year because the County has to put the pensions in the bank. Jerry Clark said they were spending the rainy day funds when he came on the board.... the recodation fees [see affordable housing] got them out of the hole.

Post employment benefit funds are the reason they say that they must keep the real property tax [ real estate tax] to prepare for what indebtedness they will have to cover. They claim that we have the lowest tax rate in Southern Maryland at .892%.

Linda Kelley says and I agree that we need to move the the tax bill back 4cents.... It's a compromise between the CYT and the present .... CYT was rolled into the figures. There should be no negative impact on rolling back the taxes 4 cents this year. As Fiscal conservatives we have to look at the the $4.4 million as money that belongs to the people.

Another commissioner says that the BOCC has brought the growth rate down to 2%. She says we can't give the money back because we don't want to cut taxes this year in order to raise them next year. She claims giving the money back is not showing responsible leadership.

David Hales says... they are talking about $250 on a 1/2 million dollar house a 4 cents adjustment... on my house it would be about $75.00 per year... but that's $75.00 on top of the rising fuel and grocery costs.

Let's all remember that this is the same BOCC that let a $6Million DNR grant go by the wayside without even applying for the funds...

Just thought you would like to know that.... [BOCC is on channel 6 comcast now if you would like to see them do the budget adjustments]....

[Vote Flaherty]

The following is a prepared statement the I read at the public forum for the Calvert County budget hearing May 18th.

As we sit here today, the Total County Debt is…$133,575,640
Calvert’s population is 87,100… that is a debt of $1554 for each man, woman and child.
Or for a family of 4 $6212…this on top of State debt and the federal debt.
Remember, every time the County borrows money, we the people are effectively co-signers. We are guaranteeing the bond holders that we will pay them back, plus interest.
Our debt service alone, for 2007, is over $12 million dollars.
On top of creating more debt, (borrowing from our future) 10.8 Million alone this year, the Commissioners want to increase your property taxes.
If your house if assessed at 300,000, at the constant tax rate of .805 your tax will be $2415, at the rate the Commissioners want it, .892, will be $2676 an increase of $261. Let’s see what the people can do with that money instead of giving it to the county. What can $261 buy…
94 gallons of gas, about 6 fill-ups,
87 gallons of milk,
180 loaves of bread,
29 movie tickets at Apex Theater,
261 pounds of broccoli
157 cans of corn
1 new set of tires for your car, or you can
Save that $261 at 5.25% and earn $13.70
The 5 year increase in personal income from 2000-2005 was only 5.4% in Calvert. An average of 1.08% per year. And the Commissioners want to raise property taxes this year 10.9%. Even without the property tax increase the county’s revenue will still increase $6,759,669 from income taxes (the piggy back tax) and other sources. At least income taxes are based on your ability to pay, unlike property taxes.
How many people who purchased their home 5, 10, 15 years ago or longer can afford to purchase their home today at today’s assessed value, most likely a very, very small percentage. Yet you are being taxed as though you could!
Try to protest your property tax by not paying it and the county will sell your home to the highest bidder! Leaving you without a home.
Since 1991, 15 years, the Calvert County Board of County Commissioners has never stayed at any constant tax yield rate, so effectively they have raised your property taxes 15 years in a row.
Let’s examine why the housing market sky rocketed during the past 5 years?
Even though median income has been stagnate, relative to inflation.
As interest rates went down and money was chasing borrowers around with exotic loans, more and more people entered the market and drove prices up. The rising prices caused more people to jump in and allocate an ever-larger portion of their income toward housing (50%+++ Debt To Income ratios and stated income loans).

This made sense as long as prices rose to compensate. Once prices stagnate/decline, there is no more motivation or ability to purchase a home…hence the following….
Today the
Number of homes on the market in Calvert = 775 vs. 453 last May a 71% increase
Number of homes on the market in Charles County= 930 an increase of 126%
Number of homes on the market in St. Mary’s= 584 a 99% increase
The BOCC and County Staff should have access to all sorts of economic data and should have foreseen what is on the horizon. As interest rates rise even further home prices will decline because of the increased cost of money, effectively lowing the cost of housing.

And therefore lowering assessments. Instead of increasing property taxes every year the BOCC should have kept the rates constant and adjusted expenditures appropriately. This would have been proactive. Now future Boards will have to react to lowering assessments in the future. Being reactive. The big question is…How will future Boards deal with the decreasing revenues from lower assessments.
In the intrest of full disclosure…I am a candidate for County Commissioner and I vote no on the tax increase.
Thank you

[Toxick]

Originally Posted by residentofcre

One of the Calvert County Commissioners said that the County will have to have $11 Million for county employee pensions and that is why they could not support any alteration in the newly assessed real estate tax.

I feel total disgust that they won't budget to fit the revenue - instead of forcing the revenue to fit the budget.

I wish I had the option to charge my employer whatever I feel is necessary to live a certain lifestyle.

[residentofcre (Premo)]

Originally Posted by Toxick

I feel total disgust that they won't budget to fit the revenue - instead of forcing the revenue to fit the budget.

I wish I had the option to charge my employer whatever I feel is necessary to live a certain lifestyle.

Yeah... me too...

[Vote Flaherty]

Originally Posted by Toxick

I feel total disgust that they won't budget to fit the revenue - instead of forcing the revenue to fit the budget.

I wish I had the option to charge my employer whatever I feel is necessary to live a certain lifestyle.

The thing that is most frustrating is that the increases in the county budget is ALWAYS higher than the annual increase of inflation. "So, hey, John/Jane Q. Public, even though your wages only increased 1.5% this year we're increasing our budget 10.9% (increase in property taxes). Sorry, just deal with."

Now is time to reduce spending.

[residentofcre (Premo)]

Originally Posted by Vote Flaherty

The thing that is most frustrating is that the increases in the county budget is ALWAYS higher than the annual increase of inflation. "So, hey, John/Jane Q. Public, even though your wages only increased 1.5% this year we're increasing our budget 10.9% (increase in property taxes). Sorry, just deal with."

Now is time to reduce spending.

I was talking about the taxes with one of the commissioners. He told me that he did not agree with Linda that we could lower the taxes.... He said that the pensions for government employees were going to leave them $11 million in the hole. Then he preceded to tell me that there is a tax credit available that everyone could take advantage of....

Isn't that tax credit only available to those who make less than $50,000 a year?

And who do you know that is making under $50,000 a year who can afford a house in Calvert County?

By the way I saw Mr Hu yesterday... He remembers us from the HFAC rally. He also remembered that the only elected official there was Sue Kullem and he remembers those two other candidates that are boasting that they support HFAC were never at the rally....

[Vote Flaherty]

I read somewhere, can't remember where, that funding the pensions is only a recommendation and the agency that put out the policy has no regulatory authority
to enforce. It said that it was basically politics.

[bcp (Premo)]

Originally Posted by willie

Unless they expect inflation will come to a grinding halt, the CYT supporters should expect some cuts in future services.

lets look at this.
to the average hard working individual that earns money and pays taxes, raises his/her family and pays the taxes on the home, what services would be cut that would really make a big difference?
Fire and rescue wont be cut, public safety wont be cut, roads might be cut a little.
the majority of the cuts are going to be done on things that the average hard working individual sees little benifit from in the first place, so who really cares?