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City wins $5M in settlement over development of faulty property tax software

Baltimore officials accepted a $5 million settlement Wednesday from the designer of a property tax billing system the city maintained was riddled with problems.

The city entered into a contract with Unisys, a global information technology company, in 2002 to replace Baltimore's outdated property tax software, but shortly after the project began numerous "critical errors" were made, according to information presented to the city's spending panel.

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The Board of Estimates voted 5-0 to accept the settlement.

City officials said the system never went online. Baltimore paid at least $8 million for the technology.

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The city has since purchased a new integrated tax billing system made by another company. Officials are in the process of moving from the more than 30-year-old legacy billing system to the new one. The city began using the new system to process personal property tax bills a year ago.

A Unisys spokesman said the company stands by its work.

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