Great news! The DC Government has created an exciting new tax relief program, and you may be able to pay less property taxes with “shared-appreciation” programs like City First Homes. Consult your tax advisor to check.
How does the new policy affect a City First Homes program participant?
- Like all cities, you have to pay property taxes on your home. The amount of taxes you have to pay is based on the market value of your home. If your home goes up in value, you may have to pay more property taxes!
- With this new tax relief program, if you buy a “resale restricted property” (all City First Homes properties fall in this category!) then your property taxes will be calculated on the value of the home when you first purchased it, plus inflation.
- In other words, if you buy a “limited appreciation” home like City First Homes, you may be able to pay less property taxes.
As a DC Government supported non-profit organization that helps people afford homes in DC, we are excited about this new policy. To learn whether the above tax relief applies in your situation, we strongly encourage you to talk to your tax advisor or contact the Office of Tax and Revenue at (202) 727-4TAX (727-4829).
Visit http://otr.cfo.dc.gov/otr/cwp/view,A,1330,Q,634798.asp for more information. For general information regarding property taxes, please go to http://cfo.dc.gov/cfo/cwp/view,a,1324,q,612006.asp.
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