Office of Tax and Revenue: Press Release

(Washington, DC) The Office of Tax and Revenue's Deputy Chief Financial Officer Herbert J. Huff has released the following statement, refuting the findings of the DC Auditor's Nov. 19, 2001 report on the Homestead Tax Deduction Program:

"The Office of Tax and Revenue is actively addressing historical deficiencies in the Homestead program and has been doing so since 1997. These deficiencies are a result of the lack of prior automation and ambiguous law and regulations. We informed the DC Auditor of this at the onset of their audit review and informed them of initiatives already undertaken by the Office of Tax and Revenue. This included the implementation of automated systems, re-engineered processes, greater oversight, and increased audits. This along with training and development is providing a more effectively managed Homestead program. It is surprising that the Auditor would refer these same initiatives back to us as their new recommendations.

"We are also surprised with and dispute the Auditor's findings regarding "lost" revenue. We take exception to the methodology and sample used in their analysis. We believe the sample was misrepresented and many properties in their sample qualify for the Homestead program. Our own study indicates that much of the uncollected revenue stated as "lost" equates to benefits to which property owners are entitled. We believe that approximately $13 million is in question for the audit review period. The Auditor claims that $44.7 million may be "lost" over the three-year period (1998-2000) covered by its report.

"While we are taking steps necessary to collect any monies due as a result of erroneous Homestead deductions, it is not our desire to strip property owners of benefits for which they are eligible. Our responsibility is to ensure that the Homestead program is properly administered, that legislative intent is fulfilled, that revenue is protected, and that property owners comply with the legal requirements. We are aggressively removing properties from the program and continuing in our efforts of systems development and data matching to effectively manage this program."