Councilmember Anita Bonds, At-Large

1350 Pennsylvania Ave NW Suite 408 Washington, DC 20004
Office: 202-724-8064 Fax: 202-724-8099
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UPDATE: SENIOR CITIZENS PROPERTY TAX RELIEF BILL STATUS
ORIGINAL BILL as passed by the Council as signed by Mayor Gray and submitted by Mayor
Gray in the FY15 Budget Plan to the Council: Provided complete property tax relief or
exemption to senior District of Columbia homeowners for at least 20 years and of age 70 years
and adjusted gross income of $60,000 or less. The tax exemption would be automatic. The
bill would become effective October 1, 2014. See specific eligibility below:











Homeowner
Qualifying Age: 70 years of age

Homeownership
in the District:
Minimum of 20 years (including no more than 2
consecutive gaps of ownership where each gap shall not
exceed 120 days).
Income: $60,000 and
Has less than $12,500 of household interest and dividend
income (approximately $250,000 in assets excluding the
value of the principal property).
How will eligible
senior
homeowners be
notified of the
exemption:
Eligible seniors will receive a notice in the mail from the
Office of Tax and Revenue and will simply NOT receive a
real property tax bill.

Income tax records will be used to verify the entitlement,
but all benefits will be delivered through the real property
tax billing system.

Tax Exemption: The homeowner would receive a tax bill with a ZERO
balance from the DC Office of Tax and Revenue


Renter
Not provided for in the bill, however current law regarding the use of the
Schedule H form contained in the income tax application, allows an individual
to file a tax return to receive a renter’s tax credit or refund if their income is
$40,000.


However, recently Council Chairman Mendelson has proposed different tax relief language in
the FY15 Budget Support Act of 2014 as an ammendment
The new language requires ALL senior homeowners to pay their property taxes up front
and for EVERYONE to file a Schedule H form with their income tax return to receive their
property tax deduction through an income tax refund. Only seniors 75 years and older may
defer to a deferred tax for homeowners. It also expands the Schedule H income ceiling to
provide a separate category for senior renters. See chart below:














Homeowner
Qualifying Age: 70 years of age 75 years of age
Homeownership
in the District:
No time limited
required
Minimum of 25 years
Income: $60,000 $50,000 and
Has less than $12,500 of household
interest and dividend income
(approximately $250,000 in assets
excluding the value of the principal
property).
Interest-Free
Property Tax
Deferral:
Not eligible for
deferral. The
homeowner must
pay the remaining
balance of their
property tax upon
receipt
Eligibility: Interest-free deferral of
property taxes until the property title is
transferred/sold to a non-family
member. At the time of the transfer,
the full amount of the tax bill or lien
would be paid from the sale proceeds.
Tax Deduction: First, pay the property tax bill, which is billed two times a
year (March 31
st
and September 15
th
). Then, use the
Schedule H tax form to apply for a tax refund.


Renter
Qualifying Age: 70 years of age
Income: $60,000
Using the Schedule H form contained in the income tax
application, a senior citizen would file to receive a tax
refund for a portion of the amount of property taxes paid.

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