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Maryland / DC Chapter
OF PROPERTY AND SPECTAL
MONTGOMERY COUNTY - PROPERTY TAXES - CLASSE
Rares (MC 906-09)
Monrcomery County House DEL
DECEMBER 11, 2008
OPPOSE
NAIOP is the leading trade association for developers, owners, investors, asset
managers, brokers, and other professionals in industrial, office and mixed-use commercial
real estate development. The Maryland/DC Chapter has 387 members in the suburban
Maryland region
NAIOP opposes MC 906-09 which authorizes counties to impose varying property
tax rates on different classes of real and personal property because it invites discriminatory
tax treatment and creates an unpredictable tax climate in Montgomery County.
‘The commercial real estate industry is wary of any proposal that would allow for
discriminatory rates of taxation to be directed at one class of property owners. The District
of Columbia has established three classes of property, with the commercial and industrial
sector subject to a property tax rate that is more than twice the rate paid by the residential
sector. MC 906-09 would likely result in a disproportionate tax burden being placed on
commercial property owners in Montgomery County.
Residential property owners already enjoy tax benefits, such as the Homestead
Property Tax Credit, that are denied to the commercial property owner. Further, the trend
among the counties has been to decrease their property tax rates and seek additional
authority to grant property tax relief to residential property owners.
Creating an unpredictable tax climate is an anathema to business, and MC 906-09
upends the longstanding tax policy in Maryland that establishes a single rate of taxation on
real property. Montgomery County enjoys the largest real property assessable base in the
State which has produced substantial revenues for the County, allowing it to reduce
property tax rates from FY 2004-FY 2008,
‘Tax fairness requires that all property owners equally share the burden of financing
government so that one segment of property owners is not disproportionately burdened.
Passage of this legislation would single out Montgomery County businesses for hostile tax
treatment and is an impetus for companies to move to neighboring suburban jurisdictions.
For these reasons, we request an unfavorable report on MC 906-09.
Sally Moijeska, Executive Director
P.O. Box 2064. Kensington, MD 20801
"T; $01-580.8662
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