(Washington, DC) The Office of Tax and Revenue (OTR) announced today that the 2006 real property tax rate for residential property, as enacted by the Council of the District of Columbia, will be reduced from $0.96 to $0.92 for each $100 of assessed value.

Also for 2006, the assessment tax cap for properties receiving the Homestead benefit is reduced from 12 percent to 10 percent. This means that real property tax bills will not increase by more than 10 percent above the prior year’s tax bill. This credit does not reduce the assessed value of the property on the tax bill or the assessment notice, but appears as an automatic credit on the real property tax bill.

“The reductions in the real property tax rate and tax cap, as passed by the DC Council, will be of great benefit to the citizens of the District of Columbia,” said Sherryl Hobbs Newman, deputy chief financial officer for tax and revenue.

The real property tax rates for Class 2 commercial property ($1.85 for each $100 of assessed value) and Class 3 vacant property ($5 for each $100 of assessed value) remain the same as the previous year.

Additional information on real property taxes may be obtained by visiting the Real Property Service Center or by calling OTR’s Customer Service Center at (202) 727-4TAX (4829).