2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 8 - Real Property Assessment and Tax › Subchapter III - Miscellaneous › § 47–864. Owner-occupant residential tax credit

§ 47–864. Owner-occupant residential tax credit.
(a) Real property receiving the homestead deduction under § 47-850 or § 47-850.01 shall receive an owner-occupant residential tax credit.
(b) The credit under subsection (a) of this section shall be calculated as follows:
(1)(A) In the case of real property that did not receive the credit under this section in the prior tax year:
(i) Subtract the current tax year’s homestead deduction from the prior tax year’s assessed value; and
(ii) Multiply the amount by 110% to determine the current tax year’s taxable assessment; provided, that for real property receiving in whole or in part the homestead deduction under § 47-850 or § 47-850.01 and the tax relief deduction provided under § 47-863, the multiplier shall be 102% relative to that whole or part; or
(B) In the case of real property that did receive the credit under this section in the prior tax year:
(i) Multiply the prior tax year’s taxable assessment by 110%; provided, that for real property receiving in whole or in part the homestead deduction under § 47-850 or § 47-850.01 and the tax relief deduction provided under § 47-863, the multiplier shall be 102% relative to that whole or part; and
(ii) Subtract from that amount the difference of the current tax year’s homestead deduction less the prior tax year’s homestead deduction to determine the current tax year’s taxable assessment.
(2) Subtract the current tax year’s homestead deduction from the current tax year’s assessed value;
(3) Subtract the current tax year’s taxable assessment determined under paragraph (1) of this subsection from the amount determined in paragraph (2) of this subsection; and
(4) If the amount determined under paragraph (3) of this subsection is a positive number, multiply the amount by the applicable real property tax rate to determine the credit for the current tax year.
(c) The credit under this section shall not apply if:
(1) During the prior tax year:
(A)(i) The real property was transferred for consideration to a new owner; or
(ii) The return required by §§ 42-1103(d) and 47-903(d) was due;
(B) The value of the real property was increased due to a change in the zoning classification of the real property initiated or requested by the homeowner or anyone having an interest in the real property; or
(C) The assessed value of the real property was clearly erroneous due to an error in calculation or measurement of improvements on the real property;
(2) During the prior calendar year, the real property was assessed under § 47-829; or
(3) During the current tax year, the qualifying homestead deduction applications for dwelling units in a cooperative housing association are:
(i) Filed for less than 50% of the dwelling units; or
(ii) Not filed timely for the entire tax year.
(d) Notwithstanding any other provision of this section, if the entire interest in the real property is transferred to a new owner and the real property no longer qualifies as a homestead pursuant to § 47-850 or § 47-851[§ 47-850.01], the real property shall be entitled to the credit applicable to the installment payable during the half tax year during which the ownership interest was transferred. At the end of the half tax year, the credit shall cease.
(e) Notwithstanding any other provision of this chapter, if the current tax year's taxable assessment of a real property receiving the homestead deduction under § 47-850(a) or § 47-850.01 is less than 40% of the current tax year's assessed value, the current tax year's taxable assessment for purposes of this section, § 47-850(a), and § 47-850.01 shall be 40% of the current tax year's assessed value, the real property shall be taxed for purposes of § 47-813 on such taxable assessment, and there shall be no credit under this section.
(f) The credit under this section shall:
(1) Be nonrefundable;
(2) Be apportioned equally between each installment during the tax year; and
(3) Not be carried forward or carried back.
(g) For that part of a housing cooperative receiving the homestead deduction under § 47-850.01 and the tax relief deduction provided under § 47-863, the credit under this section attributable to the assessment exceeding 102% up to 110% of the prior tax year's taxable assessment (or the current tax year's taxable assessment if the credit was not received in the prior tax year) shall be an additional benefit to be passed on to the eligible household in the same manner as the deduction under § 47-863(c)(2)(C). No such credit attributable to such assessment increase shall be passed on unless the entire housing cooperative qualifies for a credit under this section. The part of the housing cooperative that does not qualify for both the homestead deduction under § 47-850.01 and the tax relief deduction provided under § 47-863 shall only receive the credit under this section attributable to the assessment exceeding 110% of the prior tax year's taxable assessment (or the current tax year's taxable assessment if the credit was not received in the prior tax year).
(Oct. 3, 2001, D.C. Law 14-28, § 2012(b), 48 DCR 6981; Oct. 1, 2002, D.C. Law 14-190, § 822, 49 DCR 6968; Apr. 22, 2004, D.C. Law 15-135, § 2(c), 51 DCR 1843; Dec. 7, 2004, D.C. Law 15-205, § 1162(f), 51 DCR 8441; Oct. 20, 2005, D.C. Law 16-33, § 1082(d), 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-191, § 107, 53 DCR 6794; Aug. 16, 2008, D.C. Law 17-219, § 7068(b), 55 DCR 7598; Mar. 3, 2010, D.C. Law 18-111, § 7071(b), 57 DCR 181; Oct. 30, 2018, D.C. Law 22-168, § 7002, 65 DCR 9388; Sept. 11, 2019, D.C. Law 23-16, § 7092, 66 DCR 8621; July 12, 2022, D.C. Law 24-147, § 112, 69 DCR 003386; Sept. 21, 2022, D.C. Law 24-167, §§ 7052, 7073, 69 DCR 009223.)
Section References
This section is referenced in § 47-824, § 47-863, and § 47-3503.
Effect of Amendments
D.C. Law 14-190 rewrote the section.
D.C. Law 15-135, in subsec. (a)(2), deleted “, and subsequent years,” following “2003,”; in subsecs. (b) and (c), substituted “credit under subsection (a) of this section” for “credit”; and added subsec. (d).
D.C. Law 15-205, in subsecs. (a)(2), (b), and (c), purported to make changes already made by Law 15-135; and rewrote subsec. (d).
D.C. Law 16-33, in subsec. (d)(3)(A)(i), substituted “new owner and the return required by § 42-1103(d) and § 47-903(d) was due” for “new owner”; rewrote subsec. (d)(2); and added subsecs. (d)(3)(C) and (d)(4).
D.C. Law 16-191 rewrote the section.
D.C. Law 17-219 repealed subsec. (d).
D.C. Law 18-111 rewrote the section.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 7073 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).
For temporary (90 days) amendment of this section, see § 7052 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).
For temporary (90 days) amendment of this section, see § 7092 of Fiscal Year 2020 Budget Support Congressional Review Emergency Act of 2019 (D.C. Act 23-112, Sept. 4, 2019, 66 DCR 11964).
For temporary (90 days) amendment of this section, see § 7092 of Fiscal Year 2020 Budget Support Emergency Act of 2019 (D.C. Act 23-91, July 22, 2019, 66 DCR 8497).
For temporary (90 days) amendment of this section, see § 7002 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).
For temporary (90 days) amendment of this section, see § 7002 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).
For temporary (90 day) amendment of section, see §§ 2, 3 of Owner-occupant Residential Tax Credit Emergency Act of 2002 (D.C. Act 14-306, March 25, 2002, 49 DCR 3407).
For temporary (90 day) amendment of section, see § 822 of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).
For temporary (90 day) amendment of section, see § 2(e) of Owner-Occupant Residential Tax Credit and Homestead Deduction Clarification Emergency Act of 2004 (D.C. Act 15-374, February 24, 2004, 51 DCR 2618).
For temporary (90 day) amendment of section, see § 1162(f) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).
For temporary (90 day) amendment of section, see § 1162(f) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).
For temporary (90 day) amendment of section, see §§ 1082(d), 1083, 1262(c), 1263, 1264, 1286 to 1288 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see §§ 3(c), 23, 24 of Finance and Revenue Technical Amendments Second Emergency Amendment Act of 2006 (D.C. Act 16-585, December 28, 2006, 54 DCR 340).
For temporary (90 day) amendment of section, see §§ 7021(b), 7022 of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).
For temporary (90 day) amendment of section, see § 7071(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 7071(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Temporary Legislation
For temporary (225 day) amendment of section, see § 2 of Owner-Occupant Residential Tax Credit Temporary Act of 2002 (D.C. Law 14-160, June 25, 2002, law notification 51 DCR 6496).
For temporary (225 day) amendment of section, see § 2(e) of Owner-Occupant Residential Tax Credit and Homestead Deductions Temporary Act of 2004 (D.C. Law 15-159, May 18, 2004, law notification 51 DCR 5699).
Section 4(b) of D.C. Law 16-102 rewrote subpar. (b)(1)(B)(i) to read as follows:
“(i) For tax year 2006:
“(I) The current tax year’s taxable assessment shall be determined by subtracting $22,000 from 110% of the prior tax year’s taxable assessment;
“(II) The prior tax year’s taxable assessment for taxable real property located in triennial groups 1 and 2, as designated by the Office of Tax and Revenue, that has been owned and occupied continuously by the same owner since October 1, 2001, shall be recalculated by applying a 12% cap as of October 1, 2001; and
“(III) This sub-subparagraph shall apply as of October 1, 2005;”
Section 11(b) of D.C. Law 16-102 provided that the act shall expire after 225 days of its having taken effect.
Short Title
Short title of subtitle B of title VIII of Law 14-190: Section 821 of D.C. Law 14-190 provided that subtitle B of title VIII of the act may be cited as the Owner-Occupant Residential Tax Credit of 2002.
Short title of subtitle II of title I of Law 16-33: Section 1285 of D.C. Law 16-33 provided that subtitle II of title I of the act may be cited as the Triennial Group Taxable Assessment Disparity Correction Act of 2005.
Short title: Section 7070 of D.C. Law 18-111 provided that subtitle E of title VII of the act may be cited as the “Owner-Occupant Residential Tax Credit Act of 2009”.
Editor's Notes
Section 3 of Law 15-135 provided that § 2(a), (b), and (c)(3) of the act shall apply as of October 1, 2003.
Section 1083 of D.C. Law 16-33 provided that § 1082(a)(1), (b), (d)(1), and (d)(2)(B) shall apply for taxable years beginning after September 30, 2005.
Applicability and expiration of subtitle EE of title I, §§ 1261 to 1265, of D.C. Law 16-33: Sections 1263 and 1264 of D.C. Law 16-33, as amended by section 5(g) of D.C. Law 16-191 and D.C. Law 17-219, § 7068(c), (d), provided:
“Sec. 1263. Applicability; conditional effect.
“(a) Section 1262 shall apply for taxable years beginning after September 30, 2005.”
“(b) Repealed.
“(c) Repealed.
“Sec. 1264. Repealed.”
Applicability and expiration of §§ 1287 and 1288 of D.C. Law 16-33: Sections 1287 and 1288 of D.C. Law 16-33, as amended by D.C. Law 17-219, § 7068(h), (i), provided:
“Sec. 1287. Conditional applicability.
“(a) Section 1286 shall apply for taxable years beginning after September 30, 2005.
“(b) Repealed.
“Sec. 1288. Repealed.”
Section 7072 of D.C. Law 18-111 provided: “Sec. 7072. Applicability. Section 7071 shall apply to tax periods beginning after September 30, 2009.”
Applicability of D.C. Law 18-111: Section 7072 of D.C. Law 18-111, as amended by D.C. Law 19-171, § provided: “Applicability. Section 7071 shall apply to tax periods beginning after September 30, 2009.”