Baltimore Mayor Brandon Scott outlined a plan Monday to effectively reduce property taxes for some city residents through a combination of tweaks to several tax credit programs.

The strategy, which Scott announced at a morning news conference, calls for:

• An adjustment of the city’s Homestead Property Tax Credit
• The expansion of the city’s Targeted Homeowners Tax Credit, better known as the 20 Cents by 2020 program
• Boosting enrollment in the state’s Homeowners’ Property Tax Credit and Renters’ Tax Credit programs

Collectively, the moves will reduce what some homeowners are paying each year in property taxes, according to the Scott administration. While the savings would vary from resident to resident, property owners who see more moderate growth in the value of their homes would benefit most.

City officials estimate a resident with a $100,000 home that gains $10,000 in tax value over three years — a 10% increase — would see $129 in savings over that period. A resident with a $500,000 home that gains $30,000 in value — a 6% increase — would see $678 in savings over three years.

Homeowners whose homes grow in value more rapidly would see little to no impact. A resident with a $300,000 home that increases by $100,000 in value over three years would see no savings.

The tax value of the average Maryland residential property increased by 13.2% last year.

In a statement, Scott acknowledged that the city’s property tax rate has been a barrier to homeownership and said it has limited growth in the city. He reemphasized a pledge he made in his 2025 State of the City address to decrease the city’s property tax rate to under 2%, although he now plans to accomplish that goal by 2029, not 2028.

While residents may effectively pay less than 2% thanks to Scott’s tax credit tweaks, the mayor’s plan will not reduce the city’s actual tax rate in the near term. Residents currently pay an actual rate of 2.248% of assessed value. Scott’s 10-year plan calls for the actual rate to be reduced to 2.13% in 2030, although the mayor, who is currently in his second term, would have to win a third term in office to see that plan through.

During a news conference, Scott said said the effective rate reduction was just the first step of several he plans to take to reduce the property tax burden.

Deputy Finance Director Bob Cenname said officials felt they could deliver more relief with an initial cut that was targeted at residential homeowners.

“We recognize the need to try to get that overall rate down over the long-term,” Cenname said.

City leaders have faced pressure to decrease the property tax rate, which is high compared to surrounding jurisdictions.

In 2024, Renew Baltimore, a group of economists and former elected officials, petitioned city voters to place a question on the November ballot that would have shaved the city’s property tax rate over seven years to 1.2%. Backers of the group argued the proposal would help to reverse decades of population decline, bring in new investment, and limit crime, jump-starting the economy and counteracting losses to city revenues.

The Baltimore City Board of Elections rejected the petition, finding it violated Maryland law. The state’s highest court concurred, finding the question would strip power from city leaders. The court barred the question from appearing on city ballots.

Property tax revenues in Baltimore have routinely come in over budgeted projections for the last several years. In fiscal year 2025, Baltimore collected $11.7 million more than expected.

One piece of Scott’s tax proposal would require action by the City Council. The city’s Homestead Property Tax Credit, which prevents a homeowner’s taxes from growing beyond a certain percentage each year, has been set at 4% since the 1990s. A bill, which will be introduced by Council Vice President Sharon Green Middleton, would increase the cap to 6%.

Adjusting the Homestead Property Tax Credit would enable the administration to expand the Targeted Homeowners Tax Credit, officials said. That credit, a continuation of a plan from former Mayor Stephanie Rawlings-Blake, is given to all homeowners approved for the Homestead Property Tax Credit. The mayor-controlled Board of Estimates would have to approve the change.

City leaders also plan to push for increased enrollment in the state Homeowners’ Property Tax Credit. The Scott administration has been lobbying this session for the Maryland General Assembly to adjust the credit’s income criteria for inflation and effectively expand the credit to more city residents. Currently, households with a gross income exceeding $60,000 are ineligible.

Scott also expects to tap city nonprofits to help enroll more residents in the state Renters’ Tax Credit, which is also granted based on a household’s income.

Baltimore Banner reporter Hallie Miller contributed to this report.