D.C. Mun. Regs. tit. 9, r. 9-335

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 9-335 - APPLICATION FOR LOWER INCOME HOMEOWNERSHIP EXEMPTION

335.1

Application for exemption from real property tax made pursuant to D.C. Law 5-31 shall be made at the time the deed transferring the real property to a qualified lower income homeownership household is presented for recordation; Provided, however, the Mayor may accept amended returns within three (3) years of recordation.

335.2

An exemption, if approved, shall be effective the July 1st following the date the application is received and remain in effect until the end of the 5th tax year following the year in which the property was transferred to the household and only so long as the same household is an owner and occupant of the property.

335.3

For the purposes of determining the income of the household, the Deputy Chief Financial Officer shall consider the following:

(a) Income derived from salaries, wages, tips, commissions or compensation for personal services;

(b) Gains, or profits of whatever kind, in whatever form paid, from any source including income received from the United States or the District of Columbia;

(c) Income derived from any trade or business or sales or dealings in property, including capital assets whether real or personal, growing out of the ownership, or sale of, or interest in such property;

(d) Income derived from rent, royalties, interest, dividends, securities, or transactions of any trade or business carried on for gain or profit;

(e) Income derived from any source whatever, including but not limited to cash distribution from a business or investment entity in which the claimant has an interest alimony and separate maintenance payments (including amounts received under separate maintenance agreement), strike benefits, cash public assistance and relief, sick pay, workmen's compensation, proceeds of life insurance policies, the gross amount of any pension or annuity (including railroad retirement benefits, veteran's disability pension, or payment received under the federal Social Security Act), state or District of Columbia unemployment compensation laws, and non-taxable interest received from the United States, a state or instrumentality thereof;

(f) Household gross income received by all individual members of a household during the calendar year while the individuals were members of the household; and

(g) Gifts from non-governmental sources, food stamps, or food or other relief in-kind supplied by a governmental agency shall not be included in the determination of income for purposes of this section.

335.4

Evidence of income includes, but is not limited to, current pay stubs, employment letters, social security statements, public assistance statements, retirement allotment, unemployment compensation, and previous year's income tax returns.

335.5

Households shall meet the criteria set out in D.C. Code § 47-3502 (1981 Ed.), in order to be eligible for exemption pursuant to this section.

335.6

A shared equity financing agreement complies with the requirements of § 280(d)(3) of the Internal Revenue Code of 1954 if it meets the criteria set out in the definition of a shared equity financing agreement in § 335.3.

335.7

In order to qualify for exemption from taxation pursuant to D.C. Code § 47-3501 (1981), a non-profit housing organization shall meet the criteria set forth in D.C. Code § 47-3505 (1981 Ed.).

335.8

Exemption received pursuant to this section is applicable only to real property purchased after the effective date of the Act.

335.9

In the case of property transferred pursuant to a shared equity financing agreement, in order to obtain exemptions provided for by this section, the qualifying lower income homeownership household shall receive a credit against rent equal to that percentage of the real property tax that would have been due on the property without regard to this section as one hundred percent (100%) minus the percentage of the household's qualified ownership interest bears to one hundred percent (100%).

335.10

Exemption from taxation obtained pursuant to this section shall not apply to intra-family transfers as defined in this section unless they are pursuant to an arms-length transaction as defined in this section.

335.11

In order to qualify for exemption from taxation pursuant to this section, a member of a household shall not be absent from his or her home in the District for more than one hundred eighty (180) days in the calendar year in which application is made.

335.12

If real property for which an exemption has been received pursuant to this section is transferred during the five (5) year exemption period, the affected property shall immediately be assessed and taxed.

335.13

Upon the expiration of the five (5) year period in which exemption from tax has been received pursuant to this section, the affected property shall immediately be assessed and taxed.

D.C. Mun. Regs. tit. 9, r. 9-335

Final Rulemaking published at 32 DCR 1360 (March 8, 1985)