The problem of vacant property
The Baltimore Sun wrote yesterday about Goodwill Industry's problems leasing space in Southwest Baltimore. Essentially, they are running into many, many landlords with space - unwilling to lease it at current market rates, because "they think the market is going to pop". (My words). While I don't think The Sun outright calls it "speculation," that's what it is. This problem exists throughout Baltimore. We have property owners speculating on the future and leaving potentially productive property vacant.
I believe the problem is Maryland's very flawed tax appraisal and assessment process. Odds are that the vast majority of the affected properties have been appraised by SDAT well below their market value. As such, with taxes low or non-existent, the owners have little incentive to do anything different - they owe nothing and pay few taxes. If the State could improve their appraisal practices with these properties, I believe they would not only generate significant revenue, but also find that many of the vacants would be put into the housing and commercial property inventory.
Look up any block with lots of vacants in SDAT's database. I believe you'll see significant numbers of properties clearly under-appraised. Honestly - I don't understand how they miss this boat.
-jbn
I believe the problem is Maryland's very flawed tax appraisal and assessment process. Odds are that the vast majority of the affected properties have been appraised by SDAT well below their market value. As such, with taxes low or non-existent, the owners have little incentive to do anything different - they owe nothing and pay few taxes. If the State could improve their appraisal practices with these properties, I believe they would not only generate significant revenue, but also find that many of the vacants would be put into the housing and commercial property inventory.
Look up any block with lots of vacants in SDAT's database. I believe you'll see significant numbers of properties clearly under-appraised. Honestly - I don't understand how they miss this boat.
-jbn
Labels: appraisal, assessment, Baltimore City, taxes, vacant property
