NEWS RELEASE FOR IMMEDIATE RELEASE
February 28, 2003

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

Real Property Tax Relief Programs

• Owner-Occupant Residential Tax Credit Act of 2002
  The Council of the District of Columbia recently enacted legislation that allows for a tax credit to owner-occupants of residential real property. The credit ensures that a tax bill will not increase by more than 25 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 $30,000 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.

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