D.C. Code § 47-864

Current through codified legislation effective September 18, 2024

Section 47-864 - Owner-occupant residential tax credit

(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; provided, that for real property receiving in whole or in part the homestead deduction under § 47-850 or § 47-850.01 and the tax relief deduction provided under § 47-863, the multiplier shall be 102% relative to that whole or part; 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%; provided, that for real property receiving in whole or in part the homestead deduction under § 47-850 or § 47-850.01 and the tax relief deduction provided under § 47-863, the multiplier shall be 102% relative to that whole or part; 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[; and]

(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.

(c) The credit under this section shall not apply if:

(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[§ 47-850.01], 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(a) 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 this section, § 47-850(a), and § 47-850.01 shall be 40% of the current tax year's assessed value, the real property shall be taxed for purposes of § 47-813 on such taxable assessment, and there shall be no credit under this section.

(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.

(g) For that part of a housing cooperative receiving the homestead deduction under § 47-850.01 and the tax relief deduction provided under § 47-863, the credit under this section attributable to the assessment exceeding 102% up to 110% of the prior tax year's taxable assessment (or the current tax year's taxable assessment if the credit was not received in the prior tax year) shall be an additional benefit to be passed on to the eligible household in the same manner as the deduction under § 47-863(c)(2)(C). No such credit attributable to such assessment increase shall be passed on unless the entire housing cooperative qualifies for a credit under this section. The part of the housing cooperative that does not qualify for both the homestead deduction under § 47-850.01 and the tax relief deduction provided under § 47-863 shall only receive the credit under this section attributable to the assessment exceeding 110% of the prior tax year's taxable assessment (or the current tax year's taxable assessment if the credit was not received in the prior tax year).

D.C. Code § 47-864

Amended by D.C. Law 24-167,§ VII-H-7073, 69 DCR 009223, eff. 9/21/2022.

Amended by D.C. Law 24-167,§ VII-F-7052, 69 DCR 009223, eff. 9/21/2022.

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; Oct. 30, 2018, D.C. Law 22-168, § 7002, 65 DCR 9388; Sept. 11, 2019, D.C. Law 23-16, § 7092, 66 DCR 8621.

Section 3 of Law 15-135 provided 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 provided that § 1082(a)(1), (b), (d)(1), and (d)(2)(B) shall apply for taxable years beginning after September 30, 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), provided:

"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), provided:

"Sec. 1287. Conditional applicability.

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

"(b) Repealed.

"Sec. 1288. Repealed."

Section 7072 of D.C. Law 18-111 provided: "Sec. 7072. Applicability. Section 7071 shall apply to tax periods beginning after September 30, 2009."

Applicability of D.C. Law 18-111: Section 7072 of D.C. Law 18-111, as amended by D.C. Law 19-171, § provided: "Applicability. Section 7071 shall apply to tax periods beginning after September 30, 2009."