For those of you not in the "know", the DC Homestead Tax Deduction is for DC residents whose home is their principal residence. If you reside in your property, the Homestead Deduction reduces your assessed tax value by $67,500. This is a substantial amount of money and one of the perks of purchasing in DC.
Before April 1st 2010, the title company where you completed your closing filed the Homestead Tax application. After April 1, 2010, the new owner will have to do it themselves. DC has changed the requirements. (Sneaky sons of a guns...they're trying to rake in every bit of revenue possible!) You'll need to provide your drivers license or government ID, your vehicle registration (if you own a car) and your voting registration. ALL three have to show your new address.
If your title company filed your application for you after April 1, 2010, it's not going to be accepted. You'll need to refile it with DC Gov with the evidence I mentioned. You can register online to vote. The rest you'll have to complete at the lovely DMV.
DC Gov is also looking for people that no longer qualify for the Homestead Tax and haven't canceled their exemption. If they discover that you know longer qualify, owners have been charged with penalties, interest and the additional tax they owe. Word to the wise: take care of this or it could get ugly. DC is not messin' around when it comes to it's revenue generating operations!
I'd like to give a shout out to Ricki, my broker, who wrote us an email detailing these changes. Thank you!
If you have questions or need links to the application for the Homestead Deduction or the cancellation form, email me or post a comment.
2 comments:
Awesome real estate post. I’ll definitely recommend it to other. Thanks
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Real Estate Professionals will benefit greatly by building their business in 2010… I appreciate this post. Thanks
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