Angela Alsobrooks improperly claimed tax deductions on DC, Maryland properties, records show

(CNN) — Angela Alsobrooks, the Democratic nominee for U.S. 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 D.C., 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 town house in Prince George’s County. State records show she applied for and received a homestead exemption in 2008 for the town house. 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 town house 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.”

Key Senate race

After winning a contested Democratic primary earlier this year, Alsobrooks faces Republican Larry Hogan, the former Maryland governor, in the race to fill the Senate seat being vacated by retiring Democrat Ben Cardin.

In most election cycles, a Democratic nominee from deep-blue Maryland would be a shoo-in to win the general election in November. But Hogan’s entrance into the race has put the seat in play, adding to the Democratic struggle to hang on to power given that the party will need to hold seven seats in difficult races simply to keep the Senate at 50-50.

Improper use of tax exemptions has long plagued politicians running for office — at least, politically. In 2023, CNN’s KFile reported California Democratic Rep. Adam Schiff claimed primary residences in California and Maryland at the same time, claiming they were categorized as such for loan purposes. And in 2022, CNN reported that Republican Senate candidate Herschel Walker received a tax break on his Texas home intended for primary residence, despite running for office in Georgia.

Alsobrooks’ campaign pointed out Hogan also received a tax break on his Edgewater, Maryland, home in 2016 while living in the governor’s mansion in Annapolis. But governors and federal employees are exempt from the residency requirements.

Homestead tax exemptions are meant to shield a fraction of a home’s value from property taxes and apply to primary residencies, not rental or investment properties.

Records show Alsobrooks obtained the DC property after her grandmother transferred the deed to her in late 2003. Her grandparents likely qualified for the senior citizens’ tax break, and Alsobrooks never changed the exemption status.

DC law says the failure to cancel exemptions that no longer apply to the homeowner can result in “penalties equal to 10% of the delinquent tax and interest accruing each month at 1.5% until paid in full.” But it is up to the district to go after the homeowner for the money — and up to the homeowner to cancel the exemptions if circumstances change.

Alsobrooks continues to claim a homestead tax exemption on her Maryland town house, even though she no longer lives there and uses it as a rental property.

It’s unclear when Alsobrooks started renting out that property. According to state records, she applied for a license to rent out the property in 2021. In her financial disclosures that were released in August, she disclosed rental income between $15,000 and $50,000 for residential real estate.

Alsobrooks’ campaign pointed to her record advocating for local tax relief. In the summer of 2020, Alsobrooks opposed a county measure that would have raised property taxes to make up for lost revenue during the Covid-19 pandemic. And in 2022, she signed a law granting eligible elderly residents a property tax credit that would last for up to five years.

Barrier-breaking career

Alsobrooks has had a barrier-breaking career, rising in 2010 to become the first woman elected as state’s attorney from Prince George’s County before being elected in 2018 as the first woman county executive in the suburban Maryland county.

She overcame steep odds in this year’s Democratic primary to fill the Senate seat being vacated by Cardin. Her deep-pocketed opponent, Rep. David Trone, outspent her nearly 10-to-1 and dumped more than $60 million of his own cash into the race.

But despite the attacks Trone leveled against her, Alsobrooks ended up winning by 10 points, as her party sought to make her the first Black woman elected to the Senate from Maryland.

Alsobrooks has sought to nationalize the race against Hogan, a popular former governor who has sought to distance himself from former President Donald Trump. She has tried to tap into the strong Democratic leanings of the state by arguing that a Hogan victory would likely mean Republicans win back control of the Senate — and with it, the power to set the agenda and confirm judicial nominees.

On the campaign trail, Alsobrooks has pushed for a “fairer tax system” and has sharply criticized tax breaks for the richest of taxpayers.

“Too many Americans are struggling to get by and are forced to live paycheck to paycheck to make ends meet,” Alsobrooks posted on X earlier this year. “As your senator, I will fight for a fairer tax system that doesn’t deliver handouts to the top 1%.”

The-CNN-Wire

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