By Steven Kappen
Right now, almost nothing is getting cheaper – especially property taxes. Many Baltimore residents have been feeling the pressure of the city’s property tax rate for years. Recently, the mayor emphasized that the city is working to reduce the overall tax burden on residents. That announcement came as part of a broader response to a lawsuit filed by Maryland Legal Aid challenging Baltimore’s annual tax sale system.
You may have seen news coverage about the tax sale system recently. At the Maryland Volunteer Lawyers Service (MVLS), we have been raising concerns about tax sales for years – highlighting how the system can contribute to blight, displacement and ineffective city policy.
In fact, the issue is gaining attention nationwide. In 2023, the Supreme Court of the United States weighed in on a similar system in the case of Tyler v. Hennepin County, raising serious questions about whether governments should be able to seize property and keep the surplus value after taxes are paid.
So, what’s the issue?
Yes, cities have the right to collect unpaid taxes. But should someone lose their entire home over just $3,000 in unpaid taxes?
Under Baltimore’s current system, it can happen. Imagine a home valued at $100,000, being sold to satisfy a $3,000 tax debt. Instead of receiving the full value of the property through a traditional foreclosure or private sale, the homeowner may receive only a small portion of the proceeds – sometimes as little as $1,000.
These kinds of outcomes happen more often than people realize. While some buyers may genuinely want to rehabilitate properties, many investors participate in tax sales primarily to collect interest or pressure homeowners to pay under the threat of losing their homes.
The burden of this system often falls on the same communities that have historically faced redlining, discriminatory housing policies and decades of disinvestment.
Baltimore’s long-time residents – those who have held neighborhoods together through challenging times – deserve stronger protections. Existing tax credit programs help, but more needs to be done to ensure legacy homeowners can remain in their homes as the city grows and changes.
So, what can you do to protect your home?
First, make sure you are receiving every property tax credit you qualify for. The Homestead Tax Credit applies to most homeowners. The Homeowners’ Property Tax Credit is income-based and may also apply to heirs or family members who inherit property. There are also additional credits available for seniors, disabled veterans, individuals with disabilities and certain city employees.
If your property appears on the annual tax sale list, it’s important to act quickly. Make sure payments are made and seek help early if you are struggling to catch up.
MVLS is partnering with the Pro Bono Resource Center of Maryland to host four tax sale clinics throughout March and April to help homeowners understand their options and access legal assistance.
To register for a clinic, call 443-884-9471.
At MVLS, we work with volunteer attorneys to expand access to justice and support communities across Maryland. Our work includes helping low-income homeowners with estate planning and resolving title issues so families can keep their homes and build intergenerational wealth.
If you need legal assistance, call the MVLS intake line at 410-547-6537, Monday through Thursday from 9 a.m. to noon.
Protecting your home starts with information – and help is available.
The opinions expressed in this commentary are those of the writer and not necessarily those of the AFRO.