Written by Todd Ewing | 14 June 2010

In this season of the World Cup, I’m sure most of us would consider it unfair to move the goal posts while the ball is in the air. Well, according to a recent announcement from the Homestead Unit within the DC Office of Tax and Revenue, moving the goal posts on homebuyers is a perfectly acceptable practice when it comes to qualifying for the DC Homestead Deduction. 

As most of you know, the DC Homestead Deduction exempts the first $67,500 of assessed value from the tax rate, providing the homeowner a $573.75 annual savings on their real property tax bill. In order to qualify, the homeowner must be domiciled in the District of Columbia and submit the application with supporting documentation.

For years, Federal Title has provided homebuyers the complimentary service of filing the Homestead Deduction as an accommodation and without additional charge. In the past, without “supporting documentation,” our office has had the homebuyer complete the form and we physically file the form with the Office of Tax and Revenue.

is now causing tremendous angst for homebuyers and title companies alike. 

Now, according to Thanh-Thuy “Twee” Nguyen, Manager of the Homestead Unit, in order to qualify, the homebuyer will now be required to provide the following: 1) copy of DC driver’s license; 2) DC voter registration card; 3) and copy of first 2 pages of DC income tax return.  

And what if the homebuyer is a new arrival to DC? 

Well, according to Ms. Nguyen, the homebuyer will have 30 days from settlement date to 1) register to vote; 2) obtain a DC driver’s license; 3) register his/her car in DC; and 4) file with his/her employer a new DC Form D-4 (Employee Withholding Allowance Certificate).

Federal Title will continue to file the Homestead Deduction form on behalf of the homebuyer at the time of closing. However, the homebuyer will be responsible for providing the new required documentation to our office prior to or at the time of closing so that Federal Title may file and qualify the homebuyer for the benefits. 

Should the homebuyer be a new arrival to DC, then the homebuyer must provide the respective required documentation to our office within 30 days of closing so that Federal Title may properly submit application to the Homestead Unit.