Property Tax Deferral

State

District of Columbia

Year

2019

Variations in Receipt of Benefit

Other Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of property taxes. The amount of the deferral depends on which of the 3 deferral program the applicant qualifies for. The general deferral program allows for a deferral of real property tax owed in excess of 110% of real property tax liability for the preceding year; the low-income deferral allows for a deferral of any real property tax in excess of the real property tax for the prior tax year; and the low-income senior deferral allows for a deferral of all property tax. For low-income elderly program, taxes deferred shall bear interest at the rate charged on underpayments of federal income taxes under section 6621 of Internal Revenue Code of 1986 on the date the first installment of the real property tax to be deferred is originally due to be paid to the District of Columbia; provided that the rate of interest shall not exceed 1/2% per month. For all others, real property tax deferred shall bear interest at the rate of 1/2% per month For those over 75 years old who also qualify for the senior deferral and have owned a home and lived in D.C. for the last 25 years and have less than $12,500 in household interest and dividend income, the deferral is subject to 0% interest rate. Taxes deferred, together with all accumulated interest, shall constitute a preferential lien upon the real property. The benefit is distributed in two installments. If you apply from April 1st to September 30th, you will only be entitled to 1/2 of the total benefit

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property classified as Class 1 Property is eligible. This includes both homes and condominiums.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Other Criteria

Description of Eligibility Criteria

For the general program, claimant must have owned property for at least 1 year and occupied the home for the 12-month period immediately before the application date. For the low-income and low-income senior program, claimant must be a District resident living in owner-occupied house or condominium and have household Adjusted Gross Income (AGI) of less than $50,000 (aggregate income of all persons residing in household, excluding tenants). For the low-income senior program, claimant must be 65 years old or older; must own at least 50% of their house or condominium; and must have taken home equity conversion mortgage counseling as prescribed by the statute. No further deferrals of real property tax shall be granted to a taxpayer when the aggregate amount of the deferred real property tax plus interest from previous tax years is equal to or greater than 25% of the assessed value of the real property for the tax year for which the deferral is requested.

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

DC105_RR19

Footnotes

Application is required between October 1st and March 31st. Outside of this period, the amount of the benefit a claimant will receive is reduced. If a taxpayer enters the program, but at some future date and is no longer are eligible, the taxpayer must notify the District within 30 days. Failure to do so will resulting penalty of 10% of delinquent taxes and 1.5% interest for each month.

Sources

DC ST § 47-845; DC ST § 47-845.02 ~ § 47-845.03 (in effect for 2019)
Application for Tax Deferral for Low-Income Senior Property Owners and Low-Income Property Owners (November 2014) D.C. Office of Tax and Revenue
[http://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2014Low_income_tax_deferral_form_OGCFINAL.pdf Accessed 12/21/2020]
View Archived Source

Homestead/Senior Citizen Deduction (2017) Office of Tax and Revenue
[http://otr.cfo.dc.gov/page/homesteadsenior-citizen-deduction Accessed 12/21/2020]
View Archived Source

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