Sunday, September 22, 2024

Maryland, My Maryland

 CNN admits Angela Alsobrooks improperly claimed tax deductions on DC, Maryland properties

Angela Alsobrooks, the Democratic nominee for US Senate in Maryland, improperly took advantage of tax breaks she did not qualify for, including one meant for low-income senior citizens, saving thousands of dollars in taxes on two properties she owned in Washington, DC, and in Maryland.

A CNN review of property records and tax bills shows that for both properties, Alsobrooks claimed for more than a decade a homestead tax exemption that is meant to apply only to someone’s primary residence, violating state and local tax relief requirements.

She also improperly claimed a senior citizens’ tax break on her Washington property, cutting the tax bill in half. Alsobrooks, 53, never qualified for that tax break, but her grandparents, who owned the property before her, likely did.
 
A senior adviser for Alsobrooks told CNN that she was unaware of the problem and that her attorneys are working with both Washington and Prince George’s County, Maryland, to resolve the issue.

Alsobrooks saved nearly $14,000 in taxes between 2005 and 2017 on her northeast Washington property by using tax exemptions meant for the district’s primary residents, lower income residents and senior citizens, according to property tax bills reviewed by CNN.

But she did not live in Washington, according to public records. Since 1995, she has been registered to vote in Prince George’s County, where she’s been a longtime government official. She’s currently the county executive there, where she oversees the county’s budget and its tax collection division.

Connor Lounsbury, senior adviser to Alsobrooks, told CNN that after her grandmother moved out of the home in northeast Washington, Alsobrooks paid the mortgage on the property until it was sold in 2018. “She was unaware of any tax credits attached to that property and has reached out to the District of Columbia to resolve the issue and make any necessary payment,” Lounsbury said. 
 
In 2005, Alsobrooks bought a townhouse in Prince George’s County. State records show she applied for and received a homestead exemption in 2008 for the townhouse. It’s unclear when, but she eventually began renting out the property – while continuing to take the exemption meant for primary residents.

While county records for her property tax bill on the townhouse go back only as far as fiscal year 2020, it is estimated that the exemption would have saved her at least $2,600 since then.

In 2014, Alsobrooks bought another home in an “equestrian” community in Prince George’s County. She lists the property as her primary residence on her mortgage – but does not take a homestead exemption there, something her campaign points out has actually cost her money.

“When Angela bought her new property, the homestead tax credit from her previous home was not transferred,” Lounsbury said. “This resulted in no financial gain for Angela. In fact, she ended up paying more in taxes than she would have had the credit transferred over. Nevertheless, Angela is working to repay any credits received on the old property.”

It's reassuring that she's working with the tax people, now that she's been caught cheating on her state taxes. If we are to believe that all this tax avoidance was an accident, I think it's fair to question whether she is smart enough to be a Senator, though, to be sure, the bar is pretty low. 

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