District of Columbia Official Code 2001 Edition.

Division VIII. General Laws.

Title 47. Taxation, Licensing, Permits, Assessments, and Fees.

Chapter 8. Real Property Assessment and Tax.

Subchapter III. Miscellaneous.

§ 47-864. Owner-occupant residential tax credit.

Current through October 23, 2012

(a) Real property receiving the homestead deduction under § 47-850 or § 47-850.01 shall receive an owner-occupant residential tax credit.

(b) The credit under subsection (a) of this section shall be calculated as follows:

(1)(A) In the case of real property that did not receive the credit under this section in the prior tax year:

(i) Subtract the current tax year's homestead deduction from the prior tax year's assessed value; and

(ii) Multiply the amount by 110% to determine the current tax year's taxable assessment; or

(B) In the case of real property that did receive the credit under this section in the prior tax year:

(i) Multiply the prior tax year's taxable assessment by 110%; and

(ii) Subtract from that amount the difference of the current tax year's homestead deduction less the prior tax year's homestead deduction to determine the current tax year's taxable assessment.

(2) Subtract the current tax year's homestead deduction from the current tax year's assessed value.

(3) Subtract the current tax year's taxable assessment determined under paragraph (1) of this subsection from the amount determined in paragraph (2) of this subsection;

(4) If the amount determined under paragraph (3) of this subsection is a positive number, multiply the amount by the applicable real property tax rate to determine the credit for the current tax year.

(1) During the prior tax year:

(A)(i) The real property was transferred for consideration to a new owner; or

(ii) The return required by §§ 42-1103(d) and 47-903(d) was due;

(B) The value of the real property was increased due to a change in the zoning classification of the real property initiated or requested by the homeowner or anyone having an interest in the real property; or

(C) The assessed value of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property;

(2) During the prior calendar year, the real property was assessed under § 47-829; or

(3) During the current tax year, the qualifying homestead deduction applications for dwelling units in a cooperative housing association are:

(i) Filed for less than 50% of the dwelling units; or

(ii) Not filed timely for the entire tax year.

(d) Notwithstanding any other provision of this section, if the entire interest in the real property is transferred to a new owner and the real property no longer qualifies as a homestead pursuant to § 47-850 or § 47-851, the real property shall be entitled to the credit applicable to the installment payable during the half tax year during which the ownership interest was transferred. At the end of the half tax year, the credit shall cease.

(e) Notwithstanding any other provision of this chapter, if the current tax year's taxable assessment of a real property receiving the homestead deduction under § 47-850 or § 47-850.01 is less than 40% of the current tax year's assessed value, the current tax year's taxable assessment for purposes of subsection (b)(1) of this section shall be 40% of the current tax year's assessed value.

(f) The credit under this section shall:

(1) Be nonrefundable;

(2) Be apportioned equally between each installment during the tax year; and

(3) Not be carried forward or carried back.

                
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(Oct. 3, 2001, D.C. Law 14-28, § 2012(b), 48 DCR 6981; Oct. 1, 2002, D.C. Law 14-190, § 822, 49 DCR 6968; Apr. 22, 2004, D.C. Law 15-135, § 2(c), 51 DCR 1843; Dec. 7, 2004, D.C. Law 15-205, § 1162(f), 51 DCR 8441; Oct. 20, 2005, D.C. Law 16-33, § 1082(d), 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-191, § 107, 53 DCR 6794; Aug. 16, 2008, D.C. Law 17-219, § 7068(b), 55 DCR 7598; Mar. 3, 2010, D.C. Law 18-111, § 7071(b), 57 DCR 181.)

HISTORICAL AND STATUTORY NOTES

Effect of Amendments

D.C. Law 14-190 rewrote the section which had previously read as follows:

"§ 47-864. Owner-Occupant Residential Tax Credit.

"(a) Real property receiving the homestead deduction under § 47-850(c), and valued under § 47-820(b-2), shall receive an owner-occupant residential tax credit for tax year 2002.

"(b) The credit shall be calculated as follows:

"(1) Multiply the prior tax year's taxable assessment by 125%;

"(2) Subtract that amount from the tax year 2002 assessment; and

"(3) If the difference is a positive number, multiply the difference by the applicable real property tax rate for the current year.

"(c) The credit shall not apply if:

"(1) During the prior tax year:

"(A) The real property was transferred for consideration to a new owner;

"(B) The value of the real property was increased due to a change in the zoning classification of the real property initiated or requested by the homeowner or anyone having an interest in the real property; or

"(C) The assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property; or

"(2) During the prior calendar year, the real property was assessed under § 47- 829."

D.C. Law 15-135, in subsec. (a)(2), deleted ", and subsequent years," following "2003,"; in subsecs. (b) and (c), substituted "credit under subsection (a) of this section" for "credit"; and added subsec. (d).

D.C. Law 15-205, in subsecs. (a)(2), (b), and (c), purported to make changes already made by Law 15-135; and rewrote subsec. (d) which had read as follows:

"(d)(1) For real property tax year 2004, and subsequent years, real property receiving the homestead deduction under § 47-850 or § 47-850.01, and valued under § 47-820(b-2), shall receive an owner-occupant residential tax credit.

"(2) The credit shall be calculated as follows:

"(A) Subtract the amount of the prior year's homestead deduction from the prior tax year's taxable assessment;

"(B) Multiply that amount by 112%;

"(C) Subtract the amount of the current year's homestead deduction from the current tax year's assessment;

"(D) Subtract the amount computed under subparagraph (B) of this subsection from the amount in subparagraph (C) of this subsection; and

"(E) If the difference is a positive number, multiply the difference by the applicable property tax rate for the current year.

"(3) The credit shall not apply if:

"(A) During the prior tax year:

"(i) The real property was transferred for consideration to a new owner;

"(ii) The value of the real property was increased due to a change in the zoning classification of the real property initiated or requested by the homeowner or anyone having an interest in the real property; or

"(iii) The assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property; or

"(B) During the prior calendar year, the real property was assessed under § 47- 829."

D.C. Law 16-33, in subsec. (d)(3)(A)(i), substituted "new owner and the return required by § 42-1103(d) and § 47-903(d) was due" for "new owner"; rewrote subsec. (d)(2); and added subsecs. (d)(3)(C) and (d)(4). Prior to amendment, subsec. (d)(2) read as follows:

"(2) The credit shall be calculated as follows:

"(A)(i) In the case of a real property that did not receive the credit under this section in the prior tax year, subtract the prior tax year's homestead deduction from the prior tax year's assessment; or

"(ii) In the case where a real property did receive the credit under this section in the prior tax year, identify the prior tax year's capped assessment;

"(B) Multiply the amount under subparagraph (A) of this paragraph by 112% to determine the capped assessment;

"(C) Subtract the current tax year's homestead deduction from the current tax year's assessment;

"(D) Subtract the capped assessment computed under subparagraph (B) of this paragraph from the difference in subparagraph (c) of this paragraph; and

"(E) If the resulting difference is a positive number, multiply the resulting difference by the applicable property tax rate for the current tax year."

D.C. Law 16-191 rewrote the section which had read as follows:

"(a)(1) For real property tax year 2002, real property receiving the homestead deduction under § 47-850, and valued under § 47-820(b-2), shall receive an owner-occupant residential tax credit. This paragraph shall apply as of October 1, 2001.

"(2) For real property tax year 2003 real property receiving the homestead deduction under § 47-850 or § 47-850.01, and valued under § 47-820(b-2), shall receive an owner-occupant residential tax credit.

"(b) The credit under subsection (a) of this section shall be calculated as follows:

"(1) Subtract the amount of the homestead deduction from the prior tax year's taxable assessment;

"(2) Multiply that amount by 125%;

"(3) Subtract the amount of the homestead deduction from the current tax year's taxable assessment;

"(4) Subtract the amount computed under paragraph (2) of this subsection from the amount in paragraph (3) of this subsection; and

"(5) If the difference is a positive number, multiply the difference by the applicable property tax rate for the current year.

"(c) The credit under subsection (a) of this section shall not apply if:

"(1) During the prior tax year:

"(A) The real property was transferred for consideration to a new owner;

"(C) The assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property; or

"(2) During the prior calendar year, the real property was assessed under § 47- 829.

"(2) The credit shall be calculated as follows:

"(A)(i) In the case of a real property that did not receive the credit under this section in the prior tax year:

"(I) Subtract the prior tax year's homestead deduction from the prior tax year's assessed value; provided that for tax year 2006, the prior tax year's homestead deduction shall be deemed to be $60,000; and

"(II) Multiply the amount in sub-sub-subparagraph (I) of this sub-subparagraph by 112% to determine the current tax year's taxable assessment; or

"(ii) In the case of a real property that did receive the credit under this section in the prior tax year, multiply the prior tax year's taxable assessment by 112% to determine the current tax year's taxable assessment; provided, that:

"(I) For tax year 2006, the current tax year's taxable assessment shall be determined by subtracting $22,000 from 112% of the prior year's taxable assessment; and

"(II) For the tax year 2007, the amount determined in sub-sub-subparagraph (I) of this sub-subparagraph shall be the prior year's taxable assessment;

"(B) Subtract the current tax year's homestead deduction from the current tax year's assessed value;

"(C) Subtract the current tax year's taxable assessment determined under subparagraph (A) of this paragraph from the amount determined in subparagraph (B) of this paragraph; and

"(D) If the amount determined under subparagraph (C) of this paragraph is a positive number, multiply the difference by the applicable real property tax rate to determine the credit for the current tax year.

"(3) The credit shall not apply if:

"(A) During the prior tax year:

"(i) The real property was transferred for consideration to a new owner and the return required by §§ 42-1103(d) and 47-903(d) was due;

"(iii) The assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property;

"(B) During the prior calendar year, the real property was assessed under § 47- 829; or

"(C) During the tax year, qualifying and current homestead deduction applications are on file for less than 50% of the dwelling units in a cooperative housing association, or such applications are not filed in time for the homestead deduction to apply to the entire tax year.

"(4) The credit under this subsection shall be nonrefundable, and the credit shall be apportioned equally between each installment during the tax year and shall not be carried forward or carried back.

"(5) This subsection shall apply as of October 1, 2003."

D.C. Law 17-219 repealed subsec. (d), which had read as follows:

"(d)(1) In accordance with section 47-864.01, for real property tax year 2004, and subsequent years, real property receiving the homestead deduction under § 47-850 or § 47-850.01, and valued under § 47-820(b-2), shall receive an owner-occupant residential tax credit.

"(2) The credit shall be calculated as follows:

"(A)(i) In the case of a real property that did not receive the credit under this section in the prior tax year:

"(II) Multiply the amount in sub-sub-subparagraph (I) of this sub-subparagraph by 112% to determine the current tax year's taxable assessment; or

"(I) For tax year 2006, the current tax year's taxable assessment shall be determined by subtracting $22,000 from 112% of the prior year's taxable assessment; and

"(II) For the tax year 2007, the amount determined in sub-sub-subparagraph (I) of this sub-subparagraph shall be the prior year's taxable assessment;

"(B) Subtract the current tax year's homestead deduction from the current tax year's assessed value;

"(C) Subtract the current tax year's taxable assessment determined under subparagraph (A) of this paragraph from the amount determined in subparagraph (B) of this paragraph; and

"(3) The credit shall not apply if:

"(A) During the prior tax year:

"(i)(I) The real property was transferred for consideration to a new owner; and

"(II) The return required by §§ 42-1103(d) and 47-903(d) was due;

"(iii) The assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property; or

"(B) During the prior calendar year, the real property was assessed under § 47- 829.

"(5) This subsection shall apply as of October 1, 2003."

D.C. Law 18-111 rewrote the section which had read as follows:

"(b) The credit under subsection (a) of this section shall be calculated as follows:

"(1) Subtract the amount of the homestead deduction from the prior tax year's taxable assessment;

"(2) Multiply that amount by 125%;

"(3) Subtract the amount of the homestead deduction from the current tax year's taxable assessment;

"(4) Subtract the amount computed under paragraph (2) of this subsection from the amount in paragraph (3) of this subsection; and

"(5) If the difference is a positive number, multiply the difference by the applicable property tax rate for the current year.

"(c) The credit under subsection (a) of this section shall not apply if:

"(1) During the prior tax year:

"(A) The real property was transferred for consideration to a new owner;

"(C) The assessment of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property; or

"(2) During the prior calendar year, the real property was assessed under § 47- 829.

"(d) Repealed.

"(e) This section shall sunset as of October 20, 2005, if § 47-864.01 takes effect on or before October 20, 2005."

Temporary Amendments of Section

For temporary (225 day) amendment of section, see § 2 of Owner-Occupant Residential Tax Credit Temporary Act of 2002 (D.C. Law 14-160, June 25, 2002, law notification 51 DCR 6496).

For temporary (225 day) amendment of section, see § 2(e) of Owner-Occupant Residential Tax Credit and Homestead Deductions Temporary Act of 2004 (D.C. Law 15-159, May 18, 2004, law notification 51 DCR 5699).

Section 4(b) of D.C. Law 16-102 rewrote subpar. (b)(1)(B)(i) to read as follows:

"(i) For tax year 2006:

"(I) The current tax year's taxable assessment shall be determined by subtracting $22,000 from 110% of the prior tax year's taxable assessment;

"(II) The prior tax year's taxable assessment for taxable real property located in triennial groups 1 and 2, as designated by the Office of Tax and Revenue, that has been owned and occupied continuously by the same owner since October 1, 2001, shall be recalculated by applying a 12% cap as of October 1, 2001; and

"(III) This sub-subparagraph shall apply as of October 1, 2005;"

Section 11(b) of D.C. Law 16-102 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see §§ 2, 3 of Owner-occupant Residential Tax Credit Emergency Act of 2002 (D.C. Act 14-306, March 25, 2002, 49 DCR 3407).

For temporary (90 day) amendment of section, see § 822 of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

For temporary (90 day) amendment of section, see § 2(e) of Owner-Occupant Residential Tax Credit and Homestead Deduction Clarification Emergency Act of 2004 (D.C. Act 15-374, February 24, 2004, 51 DCR 2618).

For temporary (90 day) amendment of section, see § 1162(f) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1162(f) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of section, see §§ 1082(d), 1083, 1262(c), 1263, 1264, 1286 to 1288 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) amendment of section, see §§ 3(c), 23, 24 of Finance and Revenue Technical Amendments Second Emergency Amendment Act of 2006 (D.C. Act 16-585, December 28, 2006, 54 DCR 340).

For temporary (90 day) amendment of section, see §§ 7021(b), 7022 of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7071(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7071(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

Legislative History of Laws

For Law 14-28, see notes following § 47-387.51.

For Law 14-190, see notes following § 47-308.01.

For Law 15-135, see notes following § 47-850.

For Law 15-205, see notes following § 47-308.01.

For Law 16-33, see notes following § 47-308.01.

For Law 16-191, see notes following § 47-308.02.

For Law 17-219, see notes following § 47-318.05a.

For Law 18-111, see notes following § 47-305.02.

Miscellaneous Notes

Short title of subtitle B of title VIII of Law 14-190: Section 821 of D.C. Law 14-190 provided that subtitle B of title VIII of the act may be cited as the Owner-Occupant Residential Tax Credit of 2002.

Section 3 of Law 15-135 provides that § 2(a), (b), and (c)(3) of the act shall apply as of October 1, 2003.

Section 1083 of D.C. Law 16-33 provides that § 1082(a)(1), (b), (d)(1), and (d)(2)(B) shall apply for taxable years beginning after September 30, 2005.

Short title of subtitle II of title I of Law 16-33: Section 1285 of D.C. Law 16-33 provided that subtitle II of title I of the act may be cited as This subtitle may be cited as the Triennial Group Taxable Assessment Disparity Correction Act of 2005.

Applicability and expiration of subtitle EE of title I, §§ 1261 to 1265, of D.C. Law 16-33: Sections 1263 and 1264 of D.C. Law 16-33, as amended by section 5(g) of D.C. Law 16-191 and D.C. Law 17-219, § 7068(c), (d), provide:

"Sec. 1263. Applicability; conditional effect.

"(a) Section 1262 shall apply for taxable years beginning after September 30, 2005."

"(b) Repealed.

"(c) Repealed.

"Sec. 1264. Repealed."

Applicability and expiration of §§ 1287 and 1288 of D.C. Law 16-33: Sections 1287 and 1288 of D.C. Law 16-33, as amended by D.C. Law 17-219, § 7068(h), (i), provide:

"Sec. 1287. Conditional applicability.

"(a) Section 1286 shall apply for taxable years beginning after September 30, 2005.

"(b) Repealed.

"Sec. 1288. Repealed."

Short title: Section 7070 of D.C. Law 18-111 provided that subtitle E of title VII of the act may be cited as the "Owner-Occupant Residential Tax Credit Act of 2009".

Section 7072 of D.C. Law 18-111, as amended by section 115 of D.C. Law 19-171, provides:

"Sec. 7072. Applicability.

"Section 7071 shall apply to tax periods beginning after September 30, 2009."