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Ben Brown, Other/Just Looking in Oregon

How are property taxes figured in DC?

Asked by Ben Brown, Oregon Thu Dec 24, 2009

How are property taxes figured in DC? Being raised in the RE world on Prop 13 type calculations (approx. 1% of SP) when reviewing RE, it seems to be a pretty good standard. But some places, like Texas, the property taxes are real, real high. Please enlighten.

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Hey Ben,

The link in the earlier email will give you the lowdown, but it helps if you are kinda familiar to start with

Basically, for all properties, the first thing that happens is a value of the property is determined. The government calls this the 'assessed value'. DC has tax assessors who try to judge the market value of a property based upon its location, size, condition, and usage. This assessment is normally composed of two sub-values.; the land itself, and the 'improvements', i.e., home, business, garage, water, sewage, sidewalk, etc that have been made to it. <NOTE: a landowner can appeal the assessed value, if they feel it is incorrect>

Secondly, a tax rate is figured, based upon its usage. Commercial Properties are taxed differently than Residential, Multi-Units different from either of those, and lots again in a different fashion and rate. In addition, in DC, until recently, abandoned or negligent properties were give a much higher rate to encourage repair or sale. In addition, I believe there are other tax benefits due to the elderly and disabled.

Lastly, deductions are taken. A person's home receives a 'Homestead Deduction', an amount subtracted from the assessment before taxes are calculated.

These are the yearly property taxes, which are paid semi-annually, i.e., one half is paid every 6 months. There are also recordation and transfer taxes at the time of sale which total 2%-2.9% of the Sales Price of the property.

Now you know enough to make sense of the Website!

Good Hunting!

Cheerios,
1 vote Thank Flag Link Thu Dec 24, 2009
Hi Ben,

Here you go....
http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594394.asp

I hope this helps.
Jason
1 vote Thank Flag Link Thu Dec 24, 2009
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