Area politicians have been able to avoid being blamed for skyrocketing property tax bills by successfully separating rising assessments from rising taxes in the eyes of their constituents.
Now, with what critics say is an extra measure of chutzpah, many leaders are proposing "tax relief." But few of the plans actually would reduce property taxes. Instead, the myriad plans appear to be aimed at creating the impression of cutting taxes while continuing to increase revenue and spending, politicians and analysts say.
In the District, Mayor Anthony A. Williams (D) unveiled his "Tax Relief for All" last month. The mayor's plan would increase the homestead deduction and give other breaks to disabled and low-income homeowners, in addition to an income tax cut. But he acknowledged that many homeowners would still be paying close to 12 percent more in property taxes under his plan.
"It's ridiculous. It's crazy," said Matt Forman, president of the Kalorama Citizens Association in the District, whose property taxes have risen from $2,700 to $5,400 in the past four years. "I call them tax increases."
In his defense, Williams, the city's former chief financial officer, used some political new math.
"It is tax relief from what they otherwise would be paying if I had not taken this action. So that's tax relief, yes," Williams said. "I'm not trying to be disingenuous."
In Virginia, gubernatorial candidates are clashing over competing tax relief plans. Alexandria and Arlington are considering grants to help defray assessment increases. And in Maryland, legislators and local officials are scrambling to slice pennies off of tax rates.
But even if all the plans are approved, many if not most homeowners in the region would still pay more in property taxes this year than last.
"They are trying to throw us a bone," said Robin Ficker, an anti-tax activist in Montgomery County.
Douglas M. Duncan (D), the Montgomery County executive, has proposed a 2 cent reduction in the tax rate this year. Still, the owners of a $400,000 house in Montgomery would see their tax bill go up by $310.
"There will be an increase in property tax payments, but less an increase than without the tax rate cut," Duncan said. He said the county has invested increased property tax revenue in homeland security, health care and schools, and has used it to make up for cuts in federal and state aid. "There are still needs that are unmet," he said.
Some say the fact that political leaders feel the need to offer tax relief plans, however chimerical, is an indication that homeowners are sick and tired of being sick and tired of tax increases.
"It's a symbolic gesture, and it may be cynical, but it is trying to show the people paying the taxes that they understand their pain," said Matthew Crenson, a political science professor at Johns Hopkins University.
In other jurisdictions across the country, assessment increases automatically prompt a reduction in the tax rate in order to generate the same amount of tax revenue. That way, increases in home values do not automatically raise additional revenue -- and property tax bills. Politicians are then forced to raise taxes and revenue out in the open, instead of sitting back and blaming the real estate market.
The most straightforward way to lower tax bills -- reducing the tax rate enough to counteract the rise in assessments -- is a political dead end across the region. Why? Because it could reduce tax revenue, said D.C. Council member Jack Evans (D-Ward 2), chairman of the council's finance committee.
"I doubt there is the political will to do that," Evans said. "People who want services are louder than those who want lower taxes. It's just a fact of life. The halls are filled [with program advocates] when you start talking about reducing spending. Politicians respond to that."
In 1990, Montgomery County voters approved a charter amendment that limits the county to collecting property taxes equal to the previous year's total plus inflation and the value of new construction. Seven of nine council members, however, can vote to override that limit, as they have for the past three years.
"It was supposed to be overridden in an emergency, but it seems every year is an emergency," Ficker said.
In fast-growing Prince William County, officials in recent years used a complicated "tax-trigger" plan that sliced a few pennies off the tax rate each year, but only a fraction of what the increase in assessments were. As could be predicted, county property owners got double-digit tax bill increases, and county revenue skyrocketed. The county used the windfall to pay for new schools, firehouses, roads and other infrastructure.
Residents finally caught on and demanded a respite. Now, the county limits property tax increases to less than 6 percent.
"I don't think the public should blame us. We don't control the assessments," said Hilda M. Barg (D-Woodbridge), a Prince William supervisor. "But we're doing everything to get the rate down. And people are pretty happy with the quality of life."
