On Wednesday, Ed and Tracy Tilghman welcomed me to their home in southwest Baltimore to announce a plan to reduce the effective property tax rate 20 cents by 2020 for Baltimore City homeowners. The plan will target future property tax reductions to homeowners through a newly-created homeowner's tax credit program funded with revenue generated from the city's future slots location and by responsibly reducing City spending over several years. Under the proposal, an owner-occupied home in Baltimore assessed at $200,000 would see an annual tax reduction of $40 in 2013, growing to $400 by 2020.

The plan we announced is realistic, responsible, and achievable. It is real and it can be done. Providing property tax relief for city homeowners is an important priority that will help to attract and retain families in Baltimore. During this difficult economic period, it makes sense to target the city's limited resources for property tax relief directly to homeowners first to have a bigger impact for families. It also makes sense to be fiscally-responsible and protect funding for core services, especially public safety.

In order to target property tax reductions to homeowners first, we will introduce state enabling legislation during the next regular legislative session to create the Targeted Homeowners Tax Credit Program, and we will submit companion legislation defining the program to the City Council. Each year, the Mayor and City Council will appropriate funds to the tax credit program by using 90% of all City revenue generated from the city's future Video Lottery Terminal location and by responsibly reducing City spending in future years.

Under this plan, owner-occupied homes qualify for property tax relief. Vacant homes do not qualify. Vacant lots do not qualify. Owners of blighted properties and speculators do not qualify for a tax cut, and we will not subsidize their lack of commitment to Baltimore.

Other proposals to drastically cut property tax rates would cripple services-including public safety. Fiscal responsibility is a key component of this plan. In the midst of a slow economic recovery, we will pursue a property tax reduction plan that is sensible and will not put the City in a worse fiscal situation that would threaten the City's bond rating. This plan recognizes that reducing the property tax rate requires a long term solution and careful planning and budgeting.

I'm pleased that the Baltimore Sun and economists have praised the plan as "a good idea that should be enacted." The plan we announced is the beginning, not the end. My administration will continue working hard to pursue new and innovative ways to reduce the property tax burden in Baltimore and will do this in a fiscally responsible way.