NEWS RELEASE FOR IMMEDIATE RELEASE
February 28, 2003

All District Properties Now Assessed Annually
Assessment Increases Reflect Strong Real Estate Market

(Washington, DC) The Office of Tax and Revenue (OTR) announced today that assessment notices are being mailed to all real property owners in the District of Columbia. This year marks the first year for all District properties to be assessed on an annual basis, with Tri-Group 3 being assessed for the first time in three years. A total of 173,000 taxable and exempt real properties have been reassessed to reflect current market value. Property owners receiving new assessment notices will not be taxed on the new assessed value until March 2004. The District's owner-occupied real property tax rate continues to be the lowest in the Washington metropolitan area at 96 cents per $100 of assessed value.

"These assessments reflect strong growth in the District's real estate market over the past several years," said Daniel L. Black, Jr., acting deputy chief financial officer. "This is attributed to historically low interest rates, a demand of people wanting to live in the District and a demand from business owners wanting to be located in the nation's capital."

Proposed assessments of residential properties in Tri-Groups 1 and 2 have increased, on average, 12 and 20 percent, respectively. Tri-Group 3, recently assessed after three years, increased 46 percent. The annual rate of increase for Tri-Group 3 averaged 15 percent.

"Not all properties will change in value by the same rate," said Thomas Branham, OTR's chief assessor. "We are conducting more property-specific appraisals than in the past."

The levels of assessment increases are similar to those experienced by other jurisdictions in the Washington metropolitan area. Arlington County estimates increases in residential assessments to be 17 percent. A portion of Montgomery County, not having been reassessed for the past three years, reports a 47 percent increase for residential properties.

District property owners who believe their proposed assessment does not reflect the market value of their property are encouraged to file an appeal by the April 1, 2003 deadline. The appeal process begins when a property owner submits an appeal application to OTR. Information about the appeal process and the appeal application are available at libraries and fire stations throughout the District.

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