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Catania Real Property Tax Cap Clears Final Hurdle |
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WASHINGTON, D.C. - The D.C. Council gave unanimous final approval to Bill 15-303, the Owner-Occupant Residential Tax Credit Act of 2004. Introduced by Councilmembers David Catania (At-Large) and Jack Evans (Ward 2), the final measure reduces the maximum annual real property tax increase a homeowner must pay from 25% to 12%. In addition, Councilmembers raised the annual Homestead Exemption by $3,000, which will exempt the first $38,000 of property value from taxation.
Catania said, "Real property taxes have increased 50 percent since fiscal year 2000 and $200 million since fiscal year 2002. The current system threatens thousands of homeowners who could no longer afford to live in their homes. This tax relief is long overdue." After several votes, Councilmember Catania fought off an attempt to place the tax cap at 15%, instead of the originally proposed 10%. At the 10% level, more than 80% of homeowners across the District would have received benefit. To ensure sizeable relief for taxpayers, the Council settled on a 12% cap. Presently, a 25% cap applies to the amount of increased real property taxes a homeowner pays each year. Implementation of the property tax cap promises that no matter how high a property's value may escalate, taxes will not increase more than 12% over the prior year's tax. The measure is fully funded by existing revenue and is effective for the current tax year. For more information regarding his actions, contact the Office of Councilmember Catania at 202-724-7772. |
