DC owners with permits for mainly long-term new homes may seek residential tax rates

Owners may apply for residential property tax classification with a qualifying building permit. A building permit must cover new construction mainly for long-term homes or major renovations to all or part of a building solely for long-term homes. Owners must apply and promptly provide complete proof before the classification takes effect. For already improved property or property assessed under another named tax rule, only the part used solely as housing gets the residential rate. Owners must still file on time for the next year's mixed-use tax category when that year's assessment is made and an occupancy certificate has been issued. Classification starts in the half tax year of application. Changes from October 1 through March 31 get the rate for the full tax year; changes from April 1 through September 30 get it for the second tax payment only.

DC's finance chief must correct an improper permit-based residential tax classification and charge the tax owed. This applies to property that received the permit-based residential tax category in error. The property must be put mainly to residential use by whichever comes first: a new or amended approval to use any part of the building, or three years after the permit was issued. An expired permit that is not renewed within one year also triggers correction. The finance chief may allow more time or waive penalties and interest to prevent undue hardship. The correction covers each affected tax year or half year. Penalties and interest start when the unpaid tax was originally due.

Owners may request an agency review and appeal the final decision. This covers owners denied the permit-based residential tax category or whose category was taken back. The finance chief may extend the review deadline to prevent undue hardship. Owners have 45 days from the denial notice to request agency review.

Two property tax relief provisions name Avanti Real Estate Services, LLC alone in the amended phrase. This concerns wording in 2025 emergency and temporary property tax relief laws for Avanti. The emergency act applies as of January 28, 2026. It took effect after the mayor approved it on March 2 and lasts no longer than 90 days.