§ 19-3905. Benefit Determinations.

   (1)   For purposes of calculating City and School District real estate taxes, upon application pursuant to subsection (2), below: 725

      (a)   If the certified market value of an eligible property for any tax year through and including 2018, minus any homestead exclusion, is more than three times the certified market value of such property for the immediately preceding tax year, then the certified market value of such property for such tax year shall be deemed to equal three times the certified market value of such property for the immediately preceding tax year, and no further homestead exclusion shall be allowed.

      (b)   If the certified market value of an eligible property for any tax year after tax year 2018 and through tax year 2022, minus any homestead exclusion, is more than one and a half (1.5) times the certified market value of such property for the immediately preceding tax year, then the certified market value of such property for such tax year shall be deemed to equal one and a half (1.5) times the certified market value of such property for the immediately preceding tax year, and no further homestead exclusion shall be allowed; provided that:

         (.1)   For tax year 2019 only: The taxes exempted by this subsection (1)(b) shall be paid in full in tax year 2019, as if there were no exemption, and shall be credited against the taxes owing by the taxpayer for tax year 2020; provided, further, that, if the property is no longer the principal residence and domicile of the long-time owner occupant on January 1, 2020, no credit shall be provided and the credit shall immediately expire.

      (c)   If the certified market value of an eligible property for any tax year after tax year 2022 is more than one and a half (1.5) times the certified market value of such property for the immediately preceding tax year, then the certified market value of such property for such tax year shall be deemed to equal one and a half (1.5) times the certified market value of such property for the immediately preceding tax year, and no further homestead exclusion shall be allowed.

      (d)   If the certified market value of an eligible property for any tax year after tax year 2022 is more than one and three quarters (1.75) times the lowest certified market value of such property during the previous five tax years, then the certified market value of such property for such tax year shall be deemed to equal one and three quarters (1.75) times the lowest certified market value of such property during the previous five tax years, and no further homestead exclusion shall be allowed.

Regardless of whether the property is subsequently assessed at a lower or higher market value, the foregoing deemed certified market value, as provided in subsection (1)(a), (1)(b) or (1)(c), shall remain the deemed certified market value for so long as the eligible taxpayer remains eligible, until such property is sold, transferred or is no longer the principal residence of the eligible taxpayer, or until the eligible taxpayer voluntarily opts out of the program.

   (1.1)   Opting out of the program. An eligible taxpayer who is participating in the program authorized by this Chapter may subsequently opt out of the program, provided that such election shall be irrevocable with respect to the property being removed from the program. A taxpayer who opts out of the program may then apply for a homestead exclusion with respect to such property, which shall be evaluated according to the provisions of Section 19-1301.2. 726

   (2)   The Department of Revenue shall provide notice prior to the annual property tax bill to each taxpayer who could benefit from apply for or opting out of the program, including: 727

      (a)   A notice clearly describing the program authorized by this Chapter;

      (b)   The steps a taxpayer must take to enter into the program and the deadline for doing so;

      (c)   The steps a taxpayer must take to opt out of the program and thereafter apply for a homestead exclusion, and an explanation that if the taxpayer opts out, the real estate taxes due on the property will thereafter be based on its actual certified market value (minus any homestead exclusion, if any); and

      (d)   An application form and an opt-out form, which may be combined into one form. The Department and the OPA shall post a downloadable version of the application and opt-out forms on their respective websites.

   (3)   Except as otherwise provided in this subsection, no later than September 30 of each tax year, the owner of any property that meets the criteria set forth in Section 19-3903 and who wishes to participate in the program must apply to the OPA for certification as a participant in the program. 728

      (a)   The OPA is authorized to grant exceptions to the deadline provided at the beginning of this subsection (3) upon provision by an owner of real property of evidence of hardship or evidence of other good cause, at its discretion, provided that no exception to the deadline shall be granted with respect to any application received at the time of or after the certification by the Department that total exemptions equal the maximum permitted under subsection (7). The OPA shall promulgate such regulations and forms as are deemed necessary to effectuate the purpose of this subsection. The Tax Review Board is authorized to review any adverse final determination by the Department relating to an individual's application for an exception, in like manner and with the same effect as a petition for review, as provided in Chapter 19-1700. 729

      (b)   Extended deadline for the program. An owner of property who would have been eligible for the exemption of real property taxes beginning in Tax Year 2014, but who failed to submit an application by February 17, 2014, shall be deemed to have submitted a timely application if such application is submitted no later than February 17, 2021, subject to the following: 730

         (.1)   The owner must be eligible for the exemption as of the date the application is actually submitted;

         (.2)   If the OPA approves an application pursuant to this subsection (b), the resulting "deemed certified market value" shall first take effect with respect to taxes due on or after the date a timely application is filed, but no sooner than tax year 2020, and shall remain the deemed certified market value no longer than an exemption applied for on or before February 17, 2014;

         (.3)   If the total City and School District taxes exempted pursuant to this subsection (b) for any tax year, as certified by the Department no later than forty-five days after the deadline for applications under this subsection, when added to the total City and School District taxes already exempted pursuant to this Chapter for such tax year, exceeds the maximum exemptions permitted pursuant to subsection (7), below, the exemptions allocated pursuant to this subsection (b) shall be allocated among all eligible taxpayers on a pro rata basis so that the total taxes exempted for such tax year do not exceed such maximum; and

         (.4)   Each exemption authorized pursuant to this subsection (b) shall in all other respects be subject to the requirements of this Chapter.

      (c)   For tax year 2019 only, a property owner shall have until June 30, 2019, to apply to OPA for certification as a participant in the program. 731

   (4)   The OPA shall promulgate such rules, regulations, schedules or procedures as it deems necessary for the submission and establishment of proof of the eligibility of the taxpayer for the real property tax exemption provisions of this Chapter. This may include requiring recertification of income eligibility under subsection 19-3903(1)(f). 732

   (5)   The OPA shall approve or deny the application and shall determine the exemption amount to which the longtime owner-occupant is entitled. The OPA may also deny the application for lack of complete documentation with leave to refile within a stated period of time.

   (6)   Nothing in this Chapter shall be construed as a limitation on the eligibility or the amount of any special tax provisions of any longtime owner-occupant who qualifies for the special tax provisions established in Chapter 19-2900 entitled "Senior Citizen Low Income Special Tax Provisions".

   (7)   (a)   If, for any tax year through and including tax year 2018, the total City and School District taxes exempted pursuant to the foregoing on all properties in the City, as certified by the Department no later than forty- five days after the deadline for applications under this Chapter, are in excess of twenty million dollars ($20,000,000) then, notwithstanding subsection (1), above, the exemptions shall be allocated among all eligible taxpayers on a pro rata basis so that the total taxes exempted do not exceed twenty million dollars ($20,000,000). 733

      (b)   If, for tax year 2019 through and including tax year 2022, the total City and School District taxes exempted pursuant to the foregoing on all properties in the City, as certified by the Department no later than forty-five days after the deadline for applications under this Chapter, are in excess of twenty-five million dollars ($25,000,000) then, notwithstanding subsection (1), above, the exemptions shall be allocated among all eligible taxpayers on a pro rata basis so that the total taxes exempted do not exceed twenty-five million dollars ($25,000,000); provided that, for tax year 2019 only, this five million dollar ($5,000,000) increase in the maximum taxes exempted shall be applied instead to the following tax year, so that the total taxes exempted for tax year 2020 only shall not exceed thirty million dollars ($30,000,000). 734

      (c)   If, for tax year 2023 or any tax year thereafter, the total City and School District taxes exempted pursuant to the foregoing on all properties in the City, as certified by the Department no later than forty-five days after the deadline for applications under this Chapter, are in excess of thirty-five million dollars ($35,000,000) then, notwithstanding subsection (1), above, the exemptions shall be allocated among all eligible taxpayers on a pro rata basis so that the total taxes exempted do not exceed thirty-five million dollars ($35,000,000). 735

      (d)   The Department of Revenue shall submit to Council quarterly reports on the utilization of benefits under this Chapter. Those reports shall include, at minimum, the following data, both citywide and for each Council district: the amount of exemptions, the number of enrolled households, and the distribution by income of enrolled households. 736

 

Notes

725	Amended, Bill No. 150445 (approved June 30, 2015); amended, Bill No. 160012 (approved March 29, 2016); amended, Bill No. 170901 (approved April 18, 2018); amended, Bill No. 181103 (became law March 7, 2019); amended, Bill No. 220497 (approved July 27, 2022).
726	Renumbered, Bill No. 181103 (became law March 7, 2019).
727	Amended, Bill No. 150445 (approved June 30, 2015).
728	Amended, Bill No. 130854 (approved December 18, 2013); amended, Bill No. 140278 (approved August 5, 2014), effective October 1, 2014; amended, Bill No. 220497 (approved July 27, 2022).
729	Added, Bill No. 140278 (approved August 5, 2014), effective October 1, 2014.
730	Added, Bill No. 140828 (approved December 19, 2014); amended, Bill No. 160012 (approved March 29, 2016); amended, Bill No. 181103 (became law March 7, 2019).
731	Added, Bill No. 181103 (became law March 7, 2019).
732	Amended, Bill No. 160012 (approved March 29, 2016).
733	Amended, Bill No. 181103 (became law March 7, 2019).
734	Added, Bill No. 181103 (became law March 7, 2019); amended, Bill No. 220497 (approved July 27, 2022).
735	Added, Bill No. 220497 (approved July 27, 2022).
736	Added, Bill No. 220497 (approved July 27, 2022).