DC Can't Afford to Increase the Homestead Deduction
✉️ Want to forward this article? Click here.
In January, Ward 4 Councilmember Brandon Todd introduced a bill that would increase the limit of the homestead exemption in DC. The deduction works by reducing the tax assessment value of a given property. The Homestead Exemption Increase Amendment Act of 2019 would increase the exemption from $74,850 to $125,000 for single-family homes and residential co-ops.
However, while the bill is under review by the Committee on Finance and Revenue, the Chief Financial Officer (CFO) has submitted a Fiscal Impact Statement (FIS) that doesn't bode well for the bill's passage.
story continues below
loading...story continues above
![](https://assets.urbanturf.com/dc/images/blog/2019/02/homestead-deduction.jpg)
"Funds are not sufficient in the fiscal year 2019 through fiscal year 2022 budget and financial plan to implement the bill," the statement begins. "The bill will reduce real property tax revenues by $37.2 million beginning in fiscal year 2020 and $115 million over the four-year financial plan."
Interestingly, last July, a nearly identical bill was introduced or co-sponsored by every councilmember except for Chair Phil Mendelson and At-Large councilmembers Anita Bonds, Elissa Silverman, Robert White. It doesn't appear that the office of the CFO submitted an FIS at the time, although the assistant general counsel of the Office of Tax and Revenue recommended minor amendments to the bill pertaining to timing and calculation of cost-of-living adjustments.
In the bill's current iteration, the deduction would be effective as of October 1, 2019, and would be adjusted for cost-of-living annually starting October 1, 2020.
See other articles related to: cfo, dc council, homestead deduction, property taxes, taxes
This article originally published at https://dc.urbanturf.com/articles/blog/cfo-dc-cant-afford-to-increase-the-homestead-deduction/15027.
Most Popular... This Week • Last 30 Days • Ever
![Buying with Friends: What You Should Know](https://assets.urbanturf.com/dc/images/blog/2010/05/home_value.jpg)
Here are some precautions to take before buying real estate with a buddy.... read »
![$10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/VAFX2180246_45_0_image_560x420.jpg)
The six-bedroom home listed for just south of $10 million back in June went under con... read »
![16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/2500-wilson-1_image_560x420.jpg)
The new project will take the place of an obsolete office building in Courthouse.... read »
![Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/1625-mass-1_image_560x420.jpg)
The three office-to-residential conversion projects have been conditionally awarded t... read »
![500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/parcel-6-park_image_560x420.jpg)
The plans for one of the final parcels at DC's St. Elizabeth's East campus are beginn... read »
- Buying with Friends: What You Should Know
- $10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer
- 16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard
- Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements
- 500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro