I spent Easter weekend in Manhattan with my family, along with about a hojillion tourists from Europe who are taking advantage of the strong Euro for travel and discounted shopping (a weak dollar isn’t all bad).  As I wandered around the city, I couldn’t help but wonder how much the city must rake in each year from taxes, and in turn how much each and every city resident must pay for the privilege of living in such a vibrant place.

Of course, it goes without saying that NYC is a much more expensive place to live than Baltimore City.  Space is at a premium, of course, and the incredible demand for pretty much everything drives prices upward.  But it was the tax rates that made me truly wonder.  So I did some comparison shopping and found that in many ways, Baltimore and New York aren’t that far apart.

First, the good news: Maryland definitely wins when it comes to personal income taxes.  Our rates range from 2 to 5% while New York’s range from 4 to 9%, and we have more exemptions than they do.  And for those who enjoy a vice or two, Baltimore is more competitive when it comes to cigarette prices and taxes on beer and liquor as well (although New York edges us out when it comes to wine).  Of course, we’ll have to see how things shake out in the coming years when it comes to “sin taxes” in MD.  And we mustn’t forget that infamous NYC sales tax rate of 8.875%, which bites a bit harder than Maryland’s 6% when it comes to big purchases.

But then there are some areas in which New York City seems no worse than Baltimore.  Gasoline taxes are almost neck-and-neck, and Maryland legislators are already talking about how we need to raise ours (big time) to plug holes in our transportation budget.  Corporate income taxes are also lower in New York than they are in Maryland -- something I never would have suspected.  And then there’s the issue of property taxes.

New York City breaks property up by type into four categories, each of which is taxed at a different rate (which apparently makes things rather complicated).  But last year, ABC News gave the award for the #1 lowest property tax rate to New York, New York, with an effective rate of $0.77 per $100 assessed value.  At the same time, Baltimore residents were being forced to pay $2.27 per $100 assessed value.  Not a pretty comparison.

This got me wondering: is Baltimore City worth it?  I mean, if I am going to be forced to pay way too much money each year in taxes, shouldn’t I choose to do so in a place as lively and interesting as New York City?  Why waste time (and money) in Baltimore?  I know that the cost of living is not analogous, but you certainly get what you pay for in Manhattan.  I’m not sure very many Baltimore City residents would say the same, unless they are referring sarcastically to high crime rates and ever-increasing poverty.