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GIS et ¢“Snaiop MIA Sete 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 ‘wow nsiopmddcorg