April 1 Is Deadline To Appeal Assessments

On March 1, the government of the District of Columbia sent out notices of Proposed Real Property Assessment for the 2004 tax year. The notices list how much money the city thinks you would most likely get if you sold your house on the open market.

This amount determines how much you will have to pay in property taxes (the higher the assessed value, the higher the property taxes). For residential property, you have to pay 96 cents in property taxes for every $100 dollars your property is worth.

I was absolutely astonished at how high the city wants to raise my assessed value (by almost 50%, in my case).

True, home owners do want to see the value of their property rise, but not so quickly and dramatically, if they aren't planning on selling soon.

The notice did say that property owners have the right to appeal. There are three levels of appeal; you have to start with the First Level. The Second and Third Levels involve the Board of Real Property Assessments and Appeals, and the D.C. Superior Court.

I thought it might be helpful for neighbors in this area to have a copy of the First Level Appeal Application to fill out and send in, if they choose to do so. There's a copy on page 3. The form has to be completed and returned to the Office of Tax and Revenue by April 1. (The address is on the form.)

There are three ways to conduct the First-Level Appeal: in writing, by phone, or by making arrangements to talk with an assessor in person.

There are boxes on the form to check, to explain the basis of your appeal. There are four possibilities on which to base your appeal: 1) Market Value; 2) Equalization; 3) Classification; and 4) Property Damage or Condition.

Unfortunately, you can't just complain that your taxes are too high or that your property isn't worth what they think. You must send supporting documentation, or your property won't be considered for reduced assessment.

One way to start your research might be to request from the Office of Tax and Revenue a copy of the worksheets showing how the assessors determined the assessed values. "Each property owner is entitled, at no charge, to a copy of their property worksheet and a sales list for the area where the property is located," the office says on its Web site (http://www.cfo.dc.gov/services/tax/property/rights.shtm). "Information regarding other properties in the relevant area may be available; however, the Code of the District of Columbia requires the assessor to keep certain information confidential."

If you decide to appeal on the basis of Market Value, the city requests that you attach a copy of a recent written appraisal, a settlement statement (if you bought your property recently), or a copy of property insurance that states the insured value.

If you appeal on the basis of Equalization, the city requests a list of property addresses that are similar in size, condition or age as your property. Recently, I saw that the house around the corner from me was for sale. I called the real estate agent advertised and found out the asking price. I included this information in my appeal, because, although it was higher than what I paid for my house almost two years ago, it was still almost $35,000 less than the city's assessment.

According to an article in Washington Post on March 8, the median (average) purchase price of property in the 20002 Zip code was $165,000, with 459 homes sold, in the first nine months of 2002. It was $130,000, with 311 homes sold, in the first nine months of 2001. This means there was an increase in median price of $35,000 between those two time periods, in this Zip code.

The Classification appeal option might apply if you use your property as a business instead of as a residence. I'm not sure how that affects the assessment.

Lastly, if you appeal on the basis of Property Damage or Condition, you can attach documents that would show that your property has sustained damage or is not in the best of conditions, thereby lowering the value of the house.

There are a couple of important things to remember. If you live in the property being assessed, you can (and should) fill out the Homestead Deduction and Senior Citizen Tax Relief Application and Reconfirmation Form. You must own and reside in the property as your principal place of residence. By law, the District cannot normally increase your property tax by more than 25% above the previous year's bill. Also, if you are over 65, you may save some additional money on your property taxes.

The Homestead Deduction and Senior Citizen Tax Relief Application is a two-page form, so I didn't include it to be printed in this issue of the Corner Forum. But both this form and the First Level Appeal Application form are available (on the Internet) at http://www.cfo.dc.gov. I have copies of this form that I'd be willing to share with neighbors. If you would like them, contact either me or Marc [544-2447]. Otherwise, you can write to the Office of Tax and Revenue, Real Property Tax Administration, P.O. Box 176, Washington, DC 20044 — or call the tax office at 727-4829 for more information.

Also, according to the Web site, low-income residents who are first-time home-buyers and own property that is less than $250,000 in value qualify for the First Time Homebuyers Lower Income Home Ownership Tax Abatement. For more information, call the tax office.

I sent in my documentation this week but don't know how it will turn out. Good luck to all of you if you try this. Remember, there is an April 1 deadline! §