ANNAPOLIS, Md. — Mayor Brandon Scott is asking the state to allow Baltimore to increase it's sales tax by up to two percent.
In a brief hearing during a house committee meeting, city administrator Faith Leach defended the proposal.
VIDEO: Mayor Scott asks lawmakers to allow Baltimore to increase its sales tax
"By providing Baltimore with the opportunity to generate its own revenue through a local sales tax, Maryland would be aligning its tax policy with Virginia, Pennsylvania, New York, North Carolina and many other states," said Leach.
The city could bring in as much as $200 million with the plan.
According to the mayor's office, the city would use the money to give tax relief to people living in the city.
It's aimed at cutting down on the city's vacant housing crisis.
Mainly through a $1,000 property tax rebate and rental assistance.
"What we've calculated is with 1% of the sales tax which is about $70 million we would be able to do a $1,000 rate relief for all of the homeowners in the city of Baltimore and we would be able to provide a rental assistance program for rentals so they would benefit as well," said Leach.
Baltimore is one of the rare cities of its size that doesn't keep at least a portion of the sales tax it generates.
Delegate Kathy Szeliga, a Republican from Baltimore County, called the proposal, "a job killing, economy crushing disaster in the making."
The city also proposed the state allowing them to keep a portion of their sales tax.
Senate President Bill Ferguson made it clear both proposals are unlikely to pass.
"That's probably a very challenging one to see moving forward this year. I think in the scope of where we are in the state level that seems like a very very unlikely proposal this year," said Ferguson.
The state's fiscal position is putting a strain on getting added funding or adding more taxes on top of what the state is doing.
