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At this point, most of us have received our property tax assessments from the Office of Tax and Revenue (OTR). Let's face it, no way you slice it, not very many people enjoy paying taxes. For some though, there will be increases that may catch you by surprise and for others there may be slight decreases that also may come as a surprise. We’ve received several phone calls and emails with one question – Why? For those with a decrease, it is due to two factors – falling assessments and the Council’s cap of a yearly 10% increase in real property’s taxable assessment. OTR has informed us that this year assessments are down an average of 5% on single family homes and more than 10% on commercial properties. With a lower assessment comes a lower tax bill. For those whose assessment has risen, the legislation enacted by the Council at the height of the sales boom that restricts real property taxation to no more than a 10% increase in the property’s taxable assessment each year, will afford some residents slightly lower real property taxes. But not all residential properties will see a decrease, and those that do, may only see a slight decrease.
For those with an increase, the answer requires a bit more information. Many homes have typically enjoyed low tax bills over the last many years, and this year’s increase may be dramatic. Generally the less you have paid in the past, the more striking the increase will feel to you. This is due to a provision in the Mayor’s FY2010 budget that created a 40% floor on all residential property taxes. With this change, homeowners who have historically paid on only a smaller percentage of the assessed value of their homes -- enjoying lower than normal tax bills for many years -- will now be required to pay taxes on at least 40% of the value of their homes. For example, if a homeowner last year only paid on 15% of their assessed value, their tax bill this year will represent a sharp increase to what they paid last year, now at 40% of the value of their properties. By comparison, most homeowners will continue to pay taxes on 60% of the assessed value as they always have. So even with the increase to a 40% floor, those taxes will be lower than the general population.
Most of us, nonetheless, will continue to feel the pinch as the city continues to struggle with financial decisions in these tough economic times and faces a several hundred million dollar shortfall in the budget. Our office is happy to provide more information and details, as well as help work with the Office of Tax and Revenue if you would like to explore one of the city’s several tax deferral programs. Please call, 724-8072, or email me at
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, and I will be happy to work with you.
Readers have left 3 comments. (1) Untitled
2010-03-12 09:22:48 Ms. Linda O'Brien, I cannot thank you enough for taking time to write this informative article that addresses DC taxes that DC owners recently received in mail and providing your contact for additional information. “We are what we repeatedly do.” Aristotle (2) Untitled
2010-03-12 10:58:02 Councilman Wells,
Thank you for the write-up but my questions regarding the '40% floor' remain unanswered.
1. What community input was requested prior to this change in the property tax rate?
2. Why are property taxes permitted to double for some property
owners while the council several years ago limited tax increases to
10% a year?
3. Why would the DC government impose massive property tax increases at a
time when social security recipients are not receiving a cost of
living increase?
4. Why wasn't this property tax increase explained to property owners prior to receipt of their first half 2010 tax bill?
5. How is this tax increase consistent with the DC government's goal
of attracting new residents to the city and promoting home ownership?
6. Why would the DC government choose to pursue a regressive tax
such as this one which disproportionally affects those who are least
able to afford this tax increase?
(3) Untitled
2010-03-12 17:50:21 Mr. Impett,
I understand your frustration; let me address your concerns:
This change was a part of the Mayor’s proposed budget last year. There were public hearings and debate on the measure last spring and summer, and the votes were taken in public at open meetings.
Perhaps its not explained above as clearly as needed, but only those residents historically paying property taxes well below what they would otherwise owe based on their assessed value, experienced the most significant increases in their property taxes. The 10% cap is figured into each of the property tax bills and limits the amount of taxes charged on the increase in assessment value as a benefit to all tax-payers. No one is paying property taxes on the actual value of the property. Most pay on 60% of the value. Even with the increase, the tax is well below what most other residents are paying -- the residents paying the lowest amount will only be paying 40% of the value of their properties.
If you need to speak with members of the Office of Tax and Revenue staff, each property assessment and property tax bill includes a telephone number where you can get more help.
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