RISING PROPERTY TAX ASSESSMENTS GOT YOU DOWN?
No worries. The assessments are up, but they will be offset for 79 percent of homeowners by the a lower effective tax rate, explains the DC Fiscal Policy Institute. The tax reductions adopted in 2005 were "so substantial" that 2007 tax bills for nearly half of all homeowners will remain lower than their 2005 bills, DCFPI went on to say.
In 2005, the DC Council approved several provisions to provide property tax relief to homeowners facing rising assessments. These include:
An increase in the Homestead Deduction from $38,000 to $60,000;
A reduction in the residential property tax rate from 96 cents per $100 of assessed value to 92 cents; and
A 10 percent cap on annual increases in a property’s taxable assessment.
The net result is that only 21 percent of homeowners will face modest increases in their tax bills. So if are pulling your hair out over the assessment you just got in the mail relax, your tax bill should go unchanged.
graph by DCFPI
March 8, 2006
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2 comments:
Quite true, my assessment went up by 25% while my property taxes went down $4... could have been worse.
We can be thankful to Evans for having pushed for a tax rate decrease. This is only fair and equitable given the "windfall" tax revenues the District has been pulling in the last several years. Now, if we could only convince the Council to derive tax rates based on sound budgets instead of doing the opposite and basing our budgets on what the "tax rate times the assessment" brings in, we could instill some longterm fiscal responsibility in government.
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