The dispute concerns how condo units are counted
The legal question is whether individually deeded condominium units should be counted separately under the Baltimore City Charter’s exclusion for residential properties with fewer than four dwelling units. Owners at 414 Water St. are challenging roughly $500 charges on their property-tax bills for the Downtown Management Authority (DMA), arguing that each unit should be treated as a separate single-family dwelling. FOX45 News first reported the dispute and the owners’ position.
The DMA, a quasi-government entity managed by the nonprofit Downtown Partnership of Baltimore, collects about $7 million a year in surcharges, according to the FOX45 report. The money supports services such as trash removal, power washing and homeless services. The Downtown Partnership says the DMA covers a 106-block central business area and provides supplemental cleaning, safety and marketing services, according to its background material.
What city records show about the fiscal 2027 plan
Baltimore City records show that the Board of Estimates’ June 3, 2026 agenda included the DMA’s fiscal 2027 financial plan and surcharge tax rates, according to the Baltimore City Office of the Comptroller. The Downtown Partnership says the DMA budget is funded through assessments paid by commercial property owners within the Downtown Management District and supports services related to downtown cleanliness, safety, appearance and vitality, according to the Downtown Partnership. Those records describe the district’s funding and service framework but do not resolve whether individually deeded condominium units are covered by the residential-property exclusion.
Bills, boundaries and inconsistent treatment
Gueorgui Tankov told FOX45 that his first bill, received in July, listed a $350 surcharge, while other owners later received bills approaching $500. Wayne Brokke said a previous surcharge had been refunded and that he had been told it would not return, but he received another charge this year. Tankov called the charge theft, while Brokke questioned the additional cost alongside his roughly $5,000 annual property-tax bill.
A prior Maryland case involved a different assessment
A Maryland appellate decision provides limited context but does not resolve the Water Street dispute. According to the March 31, 2022 decision in Cherington Condominium v. Heather Kenney, a Montgomery County condominium case involved increased assessments imposed on some owners. That case concerned assessments by a private condominium association, not a public property-tax surcharge, and therefore did not decide whether individually deeded condominium units count as separate dwellings for a special tax or public assessment.
The owners also point to different treatment at other buildings. FOX45 reported that owners at BRECO and the Towers at Harbor Court, 10 E. Lee St., were not billed. The city’s finance department told the outlet that Harbor Court is outside the DMA, although the address appears within the district’s mapped boundaries. Council Member Zac Blanchard, who represents downtown and sits on the DMA board, told FOX45 that the state legislation was intentionally ambiguous and that he had discussed consistent application of the ordinance with the Downtown Partnership.
City and Downtown Partnership have not announced a resolution
The city and Downtown Partnership have not announced a resolution. FOX45 reported that the Downtown Partnership referred Tankov to the city, which then referred him back to the Partnership. The Partnership said it was conducting a legal review and would contact affected residents but did not provide a timetable. The Mayor’s Office also said it was reviewing the issue; no findings have been announced.
The city’s procedures add a separate timing issue. Baltimore sends real-property tax bills on July 1. Its tax-bill guidance says interest and a 1% monthly penalty apply when taxes are not paid by October 1, and that delinquent properties may later become eligible for the annual tax sale. The city’s tax-sale page also says notices are sent before the May sale. The Water Street owners have been given a November 1 deadline for the disputed surcharge, according to the FOX45 report. The city’s published information is available through its real-property-tax-bill guidance and real-property-tax information.
Residents question the services behind the charge
Residents told FOX45 that conditions near the building include blight, graffiti, litter, drugs, homelessness and sidewalk urination and defecation. They also described occasional cleanup activity and vacant properties nearby, but said the visible services did not consistently justify the added charge. Those accounts are residents’ reported observations, not an independent assessment of service levels.
The DMA surcharge rate listed in the article for fiscal 2027 is $0.2239 per $100 of assessed value, compared with $0.1700 for the Waterfront Partnership, $0.1320 for the Midtown Benefits District and $0.1250 for the Charles Village Community Benefits District. Annual financial plans and surcharge rates for Baltimore’s special benefits districts require review and authorization by the city’s Board of Estimates before bills are issued. The legal question for the Water Street owners remains unresolved while the city and Downtown Partnership conduct their reviews.
