"With the substantial increase in property assessments, many District
residents would have been faced with much higher and overly burdensome tax
bills next year," said Councilmember Catania. "While tax bills,
unfortunately, will still increase due to the higher assessments, the Council
wants to limit the burden by making sure the increase is capped at 25
percent. Without this action, some property owners would have been stuck with
paying outrageously higher tax bills next year."

In order to qualify for the tax relief, the resident must own his or her own
home and receive an annual assessment for 2002 as a result of the phasing out
of triennial assessments.

For a family in the District whose home was previously assessed at $150,000,
their property tax would have been $1,440 before being reduced by the
Homestead Deduction. If their 2002 property assessment was increased to
$225,000, which would not be unheard of, their taxes would have been
increased next year to $2,160, or an increase of 50 percent. With the Catania
property tax cap, the increase would be limited to 25 percent, or $360,
rather than an increase of $720. The Homestead Deduction would further reduce
the property tax liability by $288.

The 25 percent residential property tax cap is only included in next year's
District budget and, therefore, would only apply to next year's tax bills.
However, Councilmember Catania plans to review the matter again during next
year's budget process.

Catania successfully reallocated $500,000 within the Department of Employment
Services budget to fund transportation and other costs associated with
expanding apprenticeship programs for District residents. Specifically, the
funds are to be used to help transport the District's youth who will
participate in a four week summer apprenticeship camp, where youths will
attend training classes at union training sites.