• Tax Collection Method: Deeds
• Primary Bidding Type: Premium
• Redemption Period: 6 months
• Redemption Interest Rate/Flat Penalty: 18% simple interest per annum

Redeemable tax deeds.

Whom collects property taxes in the District of Columbia?

The Office of Tax and Revenue.

When are property taxes due in the District of Columbia?

The tax year runs from October 1 to September 30. The first half installment is due March 31, and the second half installment is due September 15.

When do property taxes become delinquent in the District of Columbia?

Tax payments are considered delinquent one day after the due date, so the delinquent dates are April 1 and September 16. A 10% penalty is immediately assessed on the unpaid tax bill amount, and then an additional 1% interest penalty is added each additional month the tax payment is delinquent.

When does the District of Columbia make the delinquent tax list available?

The delinquent tax list is published in the local newspapers, usually the Washington Post and the Washington Times, no later than three weeks before the schedule tax lien sale.

What is the name of the office whom typically conducts tax lien sales in the District of Columbia?

The Office of Tax and Revenue.

When does the District of Columbia hold their annual tax deed sale?

The annual tax deed sale is held the third Tuesday in July.  

What are the registration requirements for the District of Columbia tax deed sale?

Interested buyers must register. An individual or business entity is ineligible for the sale if that individual or entity owes taxes to the District of Columbia. At the time of registration, the buyer must pay a deposit equal to 20% of the amount he or she intends to bid.

What is the bidding type used at the District of Columbia tax deed sale?

Premium bidding at a public outcry auction.

What forms of payment are accepted at a District of Columbia tax deed sale?

Cash or certified check.

What are the general terms of payment for the District of Columbia tax deed purchased at a tax deed sale?

The 20% deposit, collected at the time of registration, is applied to any purchases the day of the sale. The remaining balance of the tax deed must be paid within five business days following the last day of the sale. The accepted payment types for the final payment are cash, certified check, cashier check, money order, or bank check.

What is the maximum return (interest rate and/or flat penalty rates) investors earn while they hold the redeemable tax deed?

The state-mandated interest rate is 18% per annum, or 1.5% accrual per month.

Is the interest rate applied only to the minimum bid amount for each property, or is this interest rate also assessed on the premium or "overbid" paid for the property during the auction?

The interest rate is only applied to the minimum bid amount. The "overbid" amount is returned to the buyer but without interest.

What is the redemption period for redeemable tax deeds in the District of Columbia? 6 months starting with the date that the tax deed was offered for sale to the public.

Are tax deeds offered "over-the-counter" in the District of Columbia?

No.

What is the name of the office that typically determines the values of properties on a annual basis?

The Office of Tax and Revenue

Does the District of Columbia feature a Geographic Information System (GIS) application on their Web site?

Yes. GIS applications can be very useful for tax lien and tax deed investors because most of them feature aerial photos (some with zooming options), and a lot of them are integrated with tax bills and assessor/appraisal records, which simplifies the task of researching properties online.

For more information on the statutes regarding property tax collection, tax liens, and tax deeds in the District of Columbia, refer to the District of Columbia Official Code. A few of the key statutes include:

• § 47-1301    Delinquent taxes-List; notice of sale; public auction.
• § 47-1302    Delinquent taxes-Notice to record owner; contents.
• § 47-1303    Delinquent taxes-Sale of property.
• § 47-1304     Real property tax assignment; sale and transfers-Deposit required; certificate of sale; tax deed; redemption.
• § 47-1306    Real property tax assignment; sale and transfers-Right of redemption.
• § 47-1307    Real property tax assignment; sale and transfers-Report to be filed with Recorder of Deeds; disposition of surplus; redemption.