DC Property Tax Assessments Show Decrease in Value

by Mark Wellborn

DC Property Tax Assessments Show Decrease in Value: Figure 1
Home For Sale in Berkley Neighborhood

DC’s Office of Tax and Revenue sent out 2011 tax assessment notices to property owners today, and most owners will likely be disappointed by what they get in the mail as residential property assessments dropped by an average of 3.7 percent. The average change for residential properties in fiscal 2010 was -3.67 percent.

Areas with the biggest drops were Hillcrest (-15 percent), Congress Heights (-13.2 percent), Deanwood (-12.6 percent) and Randle Heights (-10.8 percent). Last year, the hardest hit neighborhoods were Michigan Park (-15.57 percent), Crestwood (-13.36 percent), Petworth (-11.71 percent), Woodridge (-10.99 percent), and Riggs Park (-10.10 percent).

Very few neighborhoods actually saw assessments rise, and if they rose at all, it was modest. The three neighborhoods leading the way were: Berkley (5.1 percent), Kent (3.51 percent) and Central (2.09 percent). Last year, the top neighborhoods were Forest Hills (+1.82%), Burleith (+1.78%), Central (+1.73%), Palisades (+1.51%), and Foggy Bottom (+1.20%).

Owners will likely be further perturbed by the effect of legislation that has now gone into effect requiring homeowners to pay at least 40 percent of a property’s assessed value. On average, that bumps up property taxes by about $345.

This news comes on the heels of the report we featured yesterday that indicated home prices in the DC area had increased noticeably over the last year. The report did factor Virginia and Maryland into the increase and it was also hard to tell from the language if the report was talking about an increase in a home’s valuation or an increase in what homes were being listed for when they hit the market.

For the DC government’s full list of percentage change by neighborhood, click here.

See other articles related to: taxes, home values, dc home prices

This article originally published at http://dc.urbanturf.com/articles/blog/dc_property_tax_assessments_show_decrease_in_value/1822


  1. Jordan Peterson said at 9:16 pm on Friday February 26, 2010:
    The FHFA report yesterday showing that DC area home prices increased was based on sales prices, since the HPI index is based on mortgage prices (i.e. the value that the home was purchased for and borrowed). Here is an excerpt from the report: "The HPI, calculated using home sales price information from Fannie Mae and Freddie Mac-acquired mortgages, was 0.1 percent lower on a seasonally adjusted basis in the fourth quarter than in the third quarter of 2009." So that puts today's news in perspective. Assessed values have decreased, but what homes are actually selling for in DC (i.e. have mortgages for) have stayed about flat (-.3%) over the past year and have actually increased 3.15% from the last quarter.
  1. Happyforlesstax said at 5:57 pm on Monday March 1, 2010:
    I agree with Jordan. Tax assessments have little to nothing to do with actual value in my opinion. Less taxes is great in my book -- more money in my pocket.
  1. B Ford said at 1:03 am on Tuesday March 2, 2010:
    Tax assessments have always been funny to me. My home has lost about 40% of its value since 2006 but the value DC has it assessed at $40K more than it's worth. Must be the 'new math'.

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