OTR to Host Real Property Tax “Pop-Up” Workshop on March 7

DC Tax Pop-Up-Flyer (002)This week, the Office of Tax and Revenue (OTR) mailed 2020 assessment value notices to more than 200,000 District property owners. Property owners who have questions about their assessment are invited to attend a “Pop-Up” workshop at the Mt. Pleasant Neighborhood Library, 3160 16th Street, NW, on Thursday, March 7 from 6:30pm – 8:00pm.

 “The event will provide the Mt. Pleasant community an opportunity to learn more about their home value, the assessment process, and tax relief programs to reduce their tax bill,” said Deputy Chief Financial Officer Keith J. Richardson. “It also gives property owners the opportunity to receive relevant and timely information about their tax notices prior to the April 1 assessment appeals deadline.”

Presenters are:

  • Deputy Chief Financial Officer –  Keith Richardson
  • OTR’s Director of Operations – Eva Liggins
  • Chief Appraiser –  Olufemi Omotoso
  • Tax Relief Specialist – Jeffrey Toney
  • Customer Service Specialists  – Nicole Moore and Heather Brown

These new values are also available online at otr.cfo.dc.gov under the “Real Property” tab. It is important for property owners to remember that the notice is NOT a bill. They do not need to RSVP to attend, but space is limited.

Learn more about the 2020 revaluations at otr.cfo.dc.gov.

 

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District of Columbia Tax Assessments Indicate a Steady Real Estate Market

The Office of Tax and Revenue (OTR) announced today that it has begun to mail Tax Year (TY) 2020 assessment notices to all real property owners in the District of Columbia. More than 200,000 taxable and exempt real properties have been reassessed to reflect current market values as of January 1, 2019. This is NOT a tax bill. Property owners receiving new assessment notices will not be taxed on the new assessed value until March 2020.

The District’s real estate market remains steady as the proposed TY 2020 assessment average increase in single-family residential properties (Class 1) was 4.23 percent. The commercial (Class 2) market also shows value increases of 2.42 percent.

The TY 2020 real property assessment notice contains the proposed assessed value for a property as well as the estimated taxable assessment and important information related to property tax relief programs such as the homestead benefit and senior citizen tax relief. In addition, included on the notice is the assigned appraiser’s contact information for taxpayers who wish to discuss their assessment.

District property owners who believe their proposed TY 2020 assessment does not reflect the market value of their property are encouraged to file an appeal on or before April 1, 2019. The appeal process begins when a property owner submits a First Level Appeal Application to OTR. Property owners can appeal their assessment online by visiting otr.cfo.dc.gov under the “Real Property” tab.

Property owners can access the following documents:

2020 Base Change Commercial (Class 2)

2020 Single Family Overall Change Residential (Class 1)

2020 Residential Change Map by DC Ward

2020 Commercial Change Map by DC Ward

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DC Taxpayers May Receive up to $1,000 Based on Eligible Child Care Expenses

For tax year 2018 ONLY, District taxpayers can receive a tax credit based on the amount of eligible child care expenses paid by the taxpayer, up to $1,000, per eligible child.

To help District taxpayers learn more about the Early Learning Tax Credit (ELC), here are a few frequently asked questions about the tax credit that may help to determine eligibility for receiving the credit.

Who qualifies as an “eligible child?”

An eligible child must –

  • Be a dependent of the taxpayer; and
  • Meet the following age requirements:
    • A child under the age of 4 (age 0-3) as of December 31, 2018; or
    • A child who reached the age of 4 between October 1 and December 31, 2018. See the chart below for further information
  • A child who reached the age of 4 between January 1 and September 30, 2018 is not an eligible child.

 What are “eligible child care expenses?”

Eligible child care expenses are payments that you make to a qualified child development facility for child care services provided to an eligible child during the following time periods:

  • For children born on or after October 1, 2015, the payments may be for child care services provided at any time during 2018.
  • For children born between January 1 and September 30, 2015, the payments must be for child care services provided from January 1-August 31, 2018. (Payments for child care services provided from September 1-December 31, 2018 are not eligible child care expenses.)
  • For children born between January 1, 2014 and September 30, 2014, payments for child care services provided at any time during 2018 are not eligible child care expenses.
  • For children born between October 1, 2014 and December 31, 2014, the payments must be for child care services provided from January 1-August 31, 2018. (Payments for child care services provided from September 1-December 31, 2018 are not eligible child care expenses.)

What is a “qualified child development facility?”

A child development facility is a center, home, or other structure that provides care and other services, supervision, and guidance for children, infants, and toddlers on a regular basis, regardless of its designated name. Child development facilities must be licensed by the District of Columbia. A list of licensed facilities can be found at http://childcareconnections.osse.dc.gov/MyChildCare/ProviderSearch. A child development facility does not include a public or private elementary or secondary school engaged in legally required educational and related functions or a licensed pre-kindergarten education program.

I had no District taxable income in 2018. Can I still claim the ELC?

Yes. To the extent the amount of the ELC exceeds your income tax liability for 2018, that amount will be refunded to you.

I paid $24,000 in eligible child care expenses for my one-year old child in 2018. Can I claim the ELC for the full $24,000 I paid?

No. The amount of the ELC is capped at $1,000 per child per tax year.

To view more frequently asked questions about the Early Learning Tax Credit, please visit https://otr.cfo.dc.gov/page/early-learning-tax-credit-frequently-asked-questions-faqs.

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Small Businesses May Receive A Small Retailer Property Tax Relief Credit

A new law allows qualified corporations and unincorporated businesses engaged in the business of making sales at retail to claim a refundable franchise tax credit of up to $5,000 based on the amount of real property taxes or rent that is paid for a qualified retail location in the District. To help District taxpayers learn more about the Small Retailer Property Tax Relief Credit, here are a few frequently asked questions about the tax credit that may help to determine if a business owner is eligible to receive the credit:

What businesses are qualified to receive the SR Credit?

A qualified business can either be a corporation or an unincorporated business. The federal gross receipts of the qualified business cannot exceed $2.5 million per year. The qualified business must be engaged in making sales at retail, must have a sales tax account with the Office of Tax and Revenue (OTR) and must file District sales tax returns reflecting its retail sales. The qualified business also must be current on all District tax filings and payments for all tax types.

What does it mean for my business to be “engaged in the business of making sales at retail”?

Your business is engaged in the business of making sales at retail if your sales are “retail sales” as defined under D.C. Official Code § 47-2001(n1). Those sales include, but are not limited to, sales or charges for following:

  • All tangible personal property
  • Food, drink and alcoholic beverages
  • Digital goods
  • Hotel room or any other transient lodgings or accommodations
  • Admission to public events (except live performances of ballet, dance, or choral performances, concerts (instrumental and vocal), plays (with and without music), operas and readings and exhibitions of paintings, sculpture, photography, graphic and craft arts)
  • Parking and motor vehicle storage services
  • Real property maintenance services
  • Landscaping services
  • Health club services
  • Tanning studio services
  • Data processing and information services
  • Newspapers or publications
  • Job seeking services
  • Armored car, private investigation and security services
  • Bottled water delivery services
  • The storage of household goods
  • Carpet and upholstery cleaning services
  • Car washing services
  • Bowling alley or billiard parlor services

 What is a qualified retail location?

A qualified retail location can either be a building or part of building in the District of Columbia that is either leased or owned by the business. The qualified retail location must be classified as Class 2 Property and must have obtained a Certificate of Occupancy for commercial use and must be the primary place of the retail business of the qualified business. If the qualified retail location is rented by the qualified business, it also must be where the qualified business is engaged in selling tangible personal property or a service subject to District sales and use tax.

What types of business are not eligible to claim the SR Credit?

Businesses that are not engaged in making sales at retail are not eligible to claim the SR Credit. Examples of businesses that are not engaged in making sales at retail are medical offices, law firms, accounting firms, insurance agents, tax preparation, engineering firms, architects, tattoo parlors, dry cleaners, consultants and other service providers.

My business has two retail locations in the District. Can it claim an SR Credit for both locations?

No. You may only claim the SR Credit for a building, or part of a building, that is the primary place of your retail business.

To view more frequently asked questions about the small retailer property tax relief credit visit https://otr.cfo.dc.gov/page/small-retailer-property-tax-relief-credit-frequently-asked-questions-faqs

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OTR Launches Facebook Account in its Continuing Efforts to Educate Taxpayer on the Latest Tax Law Changes, News and Updates

As part of a larger mission of assisting taxpayers in meeting their tax responsibilities, the District of Columbia Office of Tax and Revenue (OTR) announced today its debut on Facebook, adding this platform to its social media portfolio.

OTR’s Facebook account will provide DC taxpayers with up-to-date information on tax law changes, numerous tax relief programs, services, and initiatives.

“The addition of Facebook is another platform for OTR to share information more widely and reach additional taxpayers and tax professionals,” said Deputy Chief Financial Officer Keith J. Richardson.

Research shows that 82 percent of U.S. young adults between 18 and 24 and 79 percent of adults between 30 and 49 are active on Facebook. OTR plans to use Facebook to better serve this segment of the population, sharing content on individual income, business and real property taxes.

Other social media platforms offering official OTR information include:

OTR reminds taxpayers that securing their personal and tax information is vital. When submitting a comment, personal and tax information should NOT be provided.

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DC Health Link 2019 Open Enrollment extended to 11:59pm Wednesday, February 6. Don’t Delay, Enroll Today!

dyldrpex4aawlhdA new DC law requires all residents to have health coverage in 2019, get an exemption or pay a tax penalty on their DC taxes. DC enacted this law in response to the repeal of the federal individual responsibility penalty and is modeled after the federal requirement. The penalty is based on the number of months an individual or family goes without health coverage.

For someone who goes without coverage for a full year, the penalty is: $695 for each adult and $347.50 for each child, up to $2,085 per family or 2.5 percent of family income that is over the federal tax filing threshold, whichever is greater. For more details about the tax penalty visit: https://dchealthlink.com/individual-responsibility-requirement

DC Health Link customer service representatives will be available at (855) 532-5465 from 8:00am to 8:00pm on Tuesday, February 5th and until 9:00pm on Wednesday, February 6th to work with individuals seeking to enroll in health insurance coverage effective March 1. In-person assistance will also be available at enrollment centers throughout the District to assist residents with the enrollment process through February 6th.

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We Are OTR! One Goal. One Team.

Tax Season is here! The 2019 filing season begins today, January 28, which means taxpayers can now file their income tax with federal and state governments. We are continually dedicated to delivering superb customer service to taxpayers. Our focus is on being best-in-class by offering fair, courteous and prompt service to District of Columbia taxpayers.

Click on the video below to view an important message from Deputy Chief Financial Officer Keith J. Richardson and Director of Operations Eva Liggins.

#DCTaxes #OneGoalOneTeam #DCOTR

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