Real Property Tax Rate Changes To Take Effect October 1
Real Property Tax Rate Changes to Take Effect October 1
(Washington, DC) The Office of Tax and Revenue (OTR) would like to remind homeowners of the following real property tax law changes that will take effect October 1, 2006.
Residential Property Tax Rate: The tax rate for residential properties will be reduced from $0.92 to $0.88 for each $100 of assessed value. This reduction in rate will be first reflected on the March 2007 real property tax bill.
Real Property Recordation and Transfer Tax Rates: Transfer and recordation tax rates will increase from 1.1 percent to 1.45 percent for deeds of title to all commercial properties and those residential properties sold for $400,000 or greater. The recordation tax rate will also increase from 1.1 percent to 1.45 percent for security interest instruments (such as mortgages and construction loans) to all properties, unless otherwise exempt. For example, security interest instruments on residential properties with five or fewer dwellings are exempt from any deed recordation tax.
The recordation tax on economic interest deeds, where property is transferred by the sale of the business owner’s equity, is not affected by these increases.
Click
here to Find USA Real Estate Agent in your area today,
if you are ready to buy or sell property.
|
