(Washington, DC) The Office of Tax and Revenue (OTR) will begin mailing to District property owners this week more than 150,000 real property tax bills for the 2005 First Half Real Property Tax Year. The tax bills reflect current and past due real property tax liabilities. This year's bill has been modified to provide more payment and balance history than in previous years. The intent of the new format is to make more information available to taxpayers and improve customer service.
The real property tax bills will be mailed before March 1, 2005. Any property owner who does not receive a tax bill by March 15 should call (202) 727-4TAX (727-4829).
Failure to receive a tax bill is not an excuse for not paying taxes owed. Payments are due Thursday, March 31, 2005, and payments that are mailed must be postmarked by that date. If a tax payment is late, the property owner will be charged a one-time 10 percent penalty and interest at the rate of 1.5 percent for each full or partial month that the payment is late. If the property owner's mortgage company pays the real property tax, the property owner must ensure that the payment is made by the due date.
For more information about real property tax bills and deductions for which you may qualify, call (202) 727-4TAX or visit the Real Property Service Center.
Real Property Tax Relief Programs
- Owner-Occupant Residential Tax Credit This benefit provides a tax credit to owner-occupants of residential real property. The credit ensures that a tax bill will not increase by more than 12 percent above the prior year's bill. The credit shall not apply if, during the prior tax year; 1) the real property was transferred for consideration to a new owner; 2) the value of the real property was increased due to a change in the zoning classification of the real property initiated or requested by the homeowner or anyone having an interest in the real property; 3) the assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property; or 4) during the prior calendar year, the real property was assessed under §47-829.
- Homestead Deduction This benefit reduces the real property assessed value by $38,000 prior to computing the yearly tax liability. The homestead deduction is limited to Class 1 residential property. To be eligible for the homestead exemption, a property owner must file an application and must be domiciled in the District. The property must be the owner's principal place of residence.
- Senior Citizen Real Property Tax Relief Program This benefit reduces a real property owner's property tax by 50 percent. To be eligible for the Senior Citizen Tax Relief, a property owner must be 65 years of age or older and own and occupy the property. All persons living in the property, excluding tenants, must have a total adjusted gross income of less than $100,000 for the previous calendar year. The eligible property owner or any other senior owner-occupant must own 50 percent or more of the property.
- Lower Income Home Ownership Tax Abatement This benefit grants eligible property owners a five-year tax abatement and exemption from recordation and transfer taxes. To be eligible, a property owner must occupy the property, meet certain income requirements, and submit a Lower Income Home Ownership Tax Abatement application. The eligible property owner must be a first time homebuyer in the District, and the home must not be worth more than $250,000. The owner must also file an exemption from recordation and transfer tax at the time the deed is recorded.
More information regarding the assessment and appeals processes, assessment roll information, real estate market data, and tax relief programs is available in the Real Property Service Center. Property owners may also call (202) 727-4TAX (727-4829).
