Property Tax Deferral

State

District of Columbia

Year

2022

Variations in Receipt of Benefit

Other Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of property taxes at an interest rate of 0.5% monthly (about 6% annually). Deferred taxes and accumulated interest constitute a lien upon the property. The benefit is distributed in two installments. If an application is submitted from 1 April to 30 September, the applicant will only be entitled to half of the total benefit. There are three programs the applicant may qualify and apply for. The all-homeowner tax deferral 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 homeowner tax deferral allows for a deferral of any property tax in excess of the property tax for the preceding year. The low-income senior tax deferral allows for a deferral of all property tax for the preceding year. For those over 75 years old who also qualify for the senior deferral, 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 a 0% interest rate.

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

The aggregate amount of deferred property tax may not exceed 25% of the assessed value of the property. For the all-homeowner tax deferral, the claimant must have owned the property for at least 1 year and occupied the home for the 12 months immediately prior to application. For the low-income homeowner tax deferral, the claimant must be a District resident living in an owner-occupied house or condominium and have a household Adjusted Gross Income (AGI) of less than $50,000. If 65 years of age or older, they must have taken home equity conversion mortgage counseling. For the low-income senior tax deferral, the claimant must be a District resident living in an owner-occupied house or condominium, have a household AGI of less than $50,000, be 65 years of age or older, own at least 50% of their house or condominium, and have taken home equity conversion mortgage counseling. To qualify for a 0% interest rate, the claimant must meet the criteria for the low-income senior program, be 75 or older, owned their residence for at least 25 years, and have less than $12,500 of household interest and dividend income.

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_RR22

Footnotes

Applications must be filed between 1 October and 31 March. Outside of this period, the benefit is reduced. If a taxpayer enters the program but becomes ineligible, the taxpayer must notify the District within 30 days. Failure to do so will result in a penalty of 10% of delinquent taxes and 1.5% interest for each month the deferred taxes are not paid.

Sources

D.C. Code § 47-845;
D.C. Code § 47-845.02;
D.C Code § 47-845.03 (in effect for 2022)
District of Columbia, Office of Tax and Revenue, Real Property Tax Administration, Deferrals, Page 4 (2019)
[https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/RPTA%20Brochure%20revised%20January%202019.pdf Accessed 02/22/2023]
View Archived Source

District of Columbia Office of Tax and Revenue, Application for Tax Deferral for Low-Income Senior Property Owners (2020)
[https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/ASD-110_Application_For_Real_Property%20_Tax_Deferral_090220.pdf Accessed 02/17/2023]
View Archived Source
District of Columbia Office of Tax and Revenue, Homestead/Senior Citizen Deduction
[https://web.archive.org/web/20220929204142/https://otr.cfo.dc.gov/page/homesteadsenior-citizen-deduction Accessed 11/30/2023]
View Archived Source

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