District of Columbia
Variations in Receipt of Benefit
Other Variation in Receipt of Benefits
The benefit is a deferral of property taxes. There are several programs the applicant may qualify and apply 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
Eligible Property Type
Characteristics of Eligible Property
Only residential property classified as Class 1 Property is eligible. This includes both homes and condominiums.
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. For seniors 75 or older, who have owned the residence for at least 25 years and has less than $12,500 of household interest and dividend income, 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
DC ST § 47-845.02
DC ST § 47-845.03 (in effect for 2020)
[http://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2014Low_income_tax_deferral_form_OGCFINAL.pdf Accessed 11/04/2021]
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Homestead/Senior Citizen Deduction (2017) Office of Tax and Revenue
[http://otr.cfo.dc.gov/page/homesteadsenior-citizen-deduction Accessed 11/04/2021]
View Archived Source