The District of Columbia real estate tax is a complex and multifaceted topic that can be difficult to understand. This guide will provide you with a comprehensive overview of the District of Columbia real estate tax, including information on the different types of taxes, rates, exemptions, and payment methods.
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Whether you are a homeowner, landlord, or business owner, it is important to understand the District of Columbia real estate tax. This guide will help you to navigate the complexities of the tax system and ensure that you are paying the correct amount of taxes.
District of Columbia Real Estate Tax Overview
Real estate taxes in the District of Columbia are levied by the District of Columbia Office of Tax and Revenue (OTR). The OTR is responsible for assessing the value of all real property in the District and for collecting real estate taxes from property owners.
The history of real estate taxes in the District of Columbia dates back to the early days of the city. The first real estate tax was levied in 1802, and the tax rate has been steadily increasing ever since.
There are two types of real estate taxes imposed in the District of Columbia: the property tax and the supplemental property tax.
Property Tax
The property tax is the main source of revenue for the District of Columbia government. The tax is levied on all real property in the District, including land, buildings, and other structures.
The property tax rate is determined by the District of Columbia Council. The current property tax rate is 0.85% of the assessed value of the property.
Supplemental Property Tax, District of columbia real estate tax
The supplemental property tax is a tax that is levied on all real property in the District of Columbia that is not used as a primary residence.
The supplemental property tax rate is 1.1% of the assessed value of the property.
Assessment Process
The OTR is responsible for assessing the value of all real property in the District of Columbia. The OTR uses a variety of factors to determine the value of a property, including the property’s location, size, and condition.
The OTR sends out assessment notices to property owners each year. The assessment notice shows the assessed value of the property and the amount of property tax that is owed.
District of Columbia Real Estate Tax Rates
| Property Type | Property Tax Rate | Supplemental Property Tax Rate |
|---|---|---|
| Primary Residence | 0.85% | 0% |
| Non-Primary Residence | 0.85% | 1.1% |
The property tax rate in the District of Columbia is relatively high compared to other jurisdictions in the United States. The high property tax rate is a major factor in the high cost of housing in the District of Columbia.
The District of Columbia Council sets the property tax rate each year. The Council considers a number of factors when setting the property tax rate, including the District’s budget needs and the impact of the tax rate on property values.
The supplemental property tax rate is also set by the District of Columbia Council. The supplemental property tax rate is designed to encourage property owners to use their property as a primary residence.
District of Columbia Real Estate Tax Exemptions
- Homestead Exemption
- Senior Citizen Exemption
- Disabled Person Exemption
- Religious Exemption
- Charitable Exemption
The homestead exemption is the most common type of real estate tax exemption in the District of Columbia. The homestead exemption allows homeowners to exempt a portion of the value of their home from property taxes.
To qualify for the homestead exemption, the homeowner must occupy the property as their primary residence.
The senior citizen exemption is available to homeowners who are 65 years of age or older. The senior citizen exemption allows homeowners to exempt a portion of the value of their home from property taxes.
To qualify for the senior citizen exemption, the homeowner must occupy the property as their primary residence.
The disabled person exemption is available to homeowners who are disabled. The disabled person exemption allows homeowners to exempt a portion of the value of their home from property taxes.
To qualify for the disabled person exemption, the homeowner must occupy the property as their primary residence.
The religious exemption is available to religious organizations. The religious exemption allows religious organizations to exempt the value of their property from property taxes.
To qualify for the religious exemption, the religious organization must use the property for religious purposes.
The charitable exemption is available to charitable organizations. The charitable exemption allows charitable organizations to exempt the value of their property from property taxes.
To qualify for the charitable exemption, the charitable organization must use the property for charitable purposes.
District of Columbia Real Estate Tax Payment
Real estate taxes in the District of Columbia are due on July 1st of each year. Property owners can pay their real estate taxes online, by mail, or in person at the OTR office.
There are two installment payment plans available for property owners who are unable to pay their real estate taxes in full by July 1st.
The first installment payment plan allows property owners to pay their real estate taxes in two equal installments. The first installment is due on July 1st, and the second installment is due on January 1st of the following year.
The second installment payment plan allows property owners to pay their real estate taxes in four equal installments. The first installment is due on July 1st, the second installment is due on October 1st, the third installment is due on January 1st of the following year, and the fourth installment is due on April 1st of the following year.
There is a late payment penalty of 10% for property taxes that are not paid by the due date.
District of Columbia Real Estate Tax Appeals
Property owners who believe that their property has been assessed at an incorrect value can appeal the assessment to the OTR.
The OTR has a three-member Board of Equalization and Review (BER) that hears appeals of real estate tax assessments.
The BER can reduce, increase, or affirm the assessed value of a property.
To appeal a real estate tax assessment, the property owner must file a petition with the BER within 30 days of receiving the assessment notice.
The BER will hold a hearing to consider the appeal. The property owner can present evidence to support their claim that the property has been assessed at an incorrect value.
The BER will issue a decision within 90 days of the hearing.
The Erfolgsrate of real estate tax appeals in the District of Columbia is relatively low. In 2020, only about 20% of appeals were successful.
Ultimate Conclusion
We hope that this guide has been helpful in providing you with a better understanding of the District of Columbia real estate tax. If you have any further questions, please do not hesitate to contact the District of Columbia Office of Tax and Revenue.
FAQ Explained
What are the different types of real estate taxes imposed in the District of Columbia?
There are two types of real estate taxes imposed in the District of Columbia: the real property tax and the tangible personal property tax.
How are real estate tax rates determined in the District of Columbia?
Real estate tax rates in the District of Columbia are determined by the District of Columbia Council.
What are the different types of real estate tax exemptions available in the District of Columbia?
There are a number of different real estate tax exemptions available in the District of Columbia, including the homestead exemption, the senior citizen exemption, and the low-income exemption.
How do I apply for a real estate tax exemption in the District of Columbia?
To apply for a real estate tax exemption in the District of Columbia, you must submit an application to the District of Columbia Office of Tax and Revenue.