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Council Member Bowser “introduces legislation to remove assessment cap on home renovations”


From a press release:

“In today’s legislative session, Councilmember Bowser introduced the “Home Improvement and Age-in-Place Incentive Act of 2009,” which will remove the assessment cap credit on home renovations. This bill provides an economic incentive for homeowners, most especially seniors, to renovate their homes.

District law currently limits the increase on a homeowner’s property tax bill to 10 percent above the previous year’s assessment. This cap, however, does not apply if a homeowner undertakes renovations that result in at least a 10 percent increase in property value. In this scenario, the entire value of the renovations as well as the market price are captured and taxed accordingly. Councilmember Bowser said “Not only does this law adversely affect lower-income homeowners but also seniors who must renovate their homes to make them, at the very least, habitable so that they may age-in-place.”

If passed, homeowners, including seniors, may renovate their homes, install a first-floor bathroom, fix a roof, install a wheelchair lift, or replace windows. Further, this bill will permit owners of lower-valued homes to benefit from the tax break to the same extent as owners of high-valued homes.”

Now, I can renovate my kitchen! Do you guys think this legislation is a good idea?

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