A bill to increase the 2-cent tax to 5 cents – and devote all bottle-tax revenue to school renovation and repairs – could be introduced as early as the City Council's first meeting of the year Jan. 9, officials said. While education advocates support the measure, it is strongly opposed by retailers and the beverage industry.
A coalition of bottlers, distributors and store owners launched a barrage of advertising when Rawlings-Blake pushed for the 2-cent tariff in 2010.
Raising the tax is a key element of the mayor's plan to raise money to fix city schools, which require an estimated $2.8 billion in repairs.
The proceeds from the tax, which officials estimate would bring in $10 million a year, would be combined with revenue from slots and other savings to create a $23 million stream of revenue. The school system could use that money to float as much as $300 million in bonds, which education advocates say is an important first step toward fixing the schools.
A beverage industry representative declined to say how her group planned to fight the measure this time. "It's a long time between now and Jan. 9," said Ellen Valentino, executive vice president of the Maryland-Delaware-D.C. Beverage Association. "Before I see the proposals, I don't want to speculate."
Opponents of the tariff say Baltimoreans are already saddled with exorbitant tax rates and can't handle another increase. The city's property tax rate is more than twice that of the surrounding counties, and Rawlings-Blake has raised more than 60 taxes and fees during her nearly two years in office.
"It's just one more thing that makes doing business in the city more expensive than doing business across an imaginary line," said Councilman Bill Henry, whose Northeast Baltimore district brushes the Baltimore County line.
Henry, who opposed the tax in 2010, said he had promised Rawlings-Blake he would keep an open mind about the increase. He said he supports fixing the schools but is not convinced that the bottle tax is the best way to do it.
"They're going to have to make a very compelling case, because I don't like it," Henry said. "I think it's a bad tax."
He questioned why Rawlings-Blake had not decided to devote a greater portion of revenue from a planned slots casino to school construction. She has pledged to spend 10 percent of that money on schools and use the remaining 90 percent to help lower property taxes by 9 cents on the dollar over nine years.
The battle over the bottle tax will likely take on a markedly different tone this time, since the proceeds are slated to go to school construction, regarded by many as one of the city's most pressing needs.
"The difference between this bill and the 2 cents is that this money is going to education," said Council Vice President Edward Reisinger.
Many of Baltimore's schools lack functioning heating and cooling systems, and they have broken doors and windows and other serious problems, according to a 2010 report from the American Civil Liberties Union.
A coalition led by the ACLU, Baltimoreans United in Leadership Development and other activist groups will lobby council members to support the tax increase, said Bebe Verdery, the civil rights group's education director.
The measure will likely face its toughest challenge in the council's Taxation and Finance Committee, of which Henry and Reisinger are members. Only two of five committee members — Reisinger and Councilman William H. Cole IV — have signaled their support for the tax increase.
Under conventional council protocol, the committee would need to approve the bill before it could go to the full body for a vote.
Councilman Carl Stokes, who chairs the committee, says he wants to hold off voting on the bill until March, when finance officials release the city's preliminary budget.