D.C. Tax Abatement: Can I apply more than once?

Can you apply for the D.C. Lower Income Homeownership Exemption (D.C. Tax Abatement) more than once?

Yes. According to the Recorder of Deeds, there are no current statutory limitations as to the frequency of a homeowner applying for the tax abatement. As such, if you are receiving the tax abatement benefit on your current home and will be purchasing a new home to be used as your primary residence, you can reap the benefits of the tax abatement again for 5 years on your new property. This, of course, assumes that your household income does not exceed program limits and qualifies for the program.

What if the homeowner intends to keep both properties and use one as a rental, can both properties receive the tax abatement benefit?

No. The tax abatement program requires that the eligible property be owner-occupied. As such, the homeowner will be required to provide written cancellation of the tax abatement benefits on the rental property to the Office of Tax and Revenue (OTR) within 30 days of the change in eligibility. If the homeowner fails to notify OTR of ineligibility, the owner may have to pay a 10% tax penalty and 1.5% interest on such tax each month that the rental property wrongfully received the exemption.

For more information or questions related to the D.C. Tax Abatement program, please contact one of our staff attorneys at info@federaltitle.com