Homestead Deduction

State

District of Columbia

Year

2018

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Exemption

Benefit

The current benefit is an exemption of assessed value of the homestead. In 2018, this assessed value exemption totaled $73,350 and is increased annually by a cost-of-living adjustment rounded to the next lowest multiple of $50. The benefit is distributed in two installments. If the application is filed between October 1 and March 31, the applicant is eligible to receive the entire benefit. If the application is filed from April 1 to September 30, the applicant is only entitled to the second installment, and therefore, half of the total benefit.

How is Benefit Disbursed

Exemption from assessed value

Eligible Property Type

Residential

Characteristics of Eligible Property

The homestead exemption is limited to only residential properties and applies to only one lot. The property must be occupied by the landowner and can only contain 5 dwelling units or fewer. On real property with a house or a condominium, a homestead is an individual's residence that comprises a dwelling unit. The property must be owned in whole or in part by the individual, or owned in whole by a trustee under a special needs trust for the benefit of the owner. In the case of a cooperative housing association, a homestead is a shareholder's or member's residence that comprises a dwelling unit. A member or shareholder can also be the beneficiary of a special needs trust who is deemed to be the owner. A member or shareholder may rightfully own the property through ownership of stock, a membership certificate, a proprietary lease, or other evidence of membership.

Eligibility Criteria

Homeowner

Principal Residence

Description of Eligibility Criteria

Eligible property owners must be domiciled in the District and file an application with the Office of the Mayor. Precise eligibility guidelines are as follows: an application must be on file with the Office of Tax and Revenue; the property must be occupied by the owner/applicant; contain no more than five dwelling units (including the unit occupied by the owner); and the property must be the principal residence (domicile) of the owner/applicant.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Record ID

DC102_RR18

Footnotes

To calculate cost of living adjustments District of Columbia uses Consumer Price Index (CPI) for the Washington-Baltimore Metropolitan Statistical Area for all-urban consumers published by the Department of Labor, or any successor index, as of the close of the 12-month period ending on 30 September of such real property tax year. Application must be filed between April 1st and September 30th.

Sources

DC ST § 47-802; DC ST § 47-849 ~ 47-850.01 (in effect for 2018)
Office of Tax and Revenue, Homestead Deduction Property Tax Relief Application FP-100, (2018)
[https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/FP-100%20HOMESTEAD%20RECONFIRMATION_FILL-IN%2001112018_0.pdf accessed 04/03/2019]
View Archived Source
Office of Tax and Revenue, Homestead/Senior Citizen Deduction Webpage, (2018)
[http://otr.cfo.dc.gov/page/homesteadsenior-citizen-deduction Accessed on 04/03/2019]
View Archived Source

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