The Senior Citizen Tax Cap Transfer Amendment Act of 2025 aims to assist long-time senior residents of the District of Columbia in managing property tax increases when they move to new homes. Currently, seniors benefit from a property assessment cap that limits tax increases based on their long-term residency. However, upon selling their homes and purchasing new ones, they lose this capped value and face significantly higher tax bills, which can deter them from relocating to more suitable housing. The proposed legislation addresses this issue by allowing eligible seniors to transfer the value of their existing owner-occupant residential tax credit to a new Class 1 home purchased within twelve months. Additionally, it permits seniors to aggregate their ownership shares to meet the fifty percent ownership requirement, thereby ensuring they retain important tax protections.

The bill amends Title 47 of the District of Columbia Official Code by adding a new subsection that outlines the conditions under which the tax credit can be transferred and aggregated. Specifically, it states that for a Class 1 property owned at least fifty percent by individuals aged 65 or older, the owner-occupant residential tax credit may be transferred to a replacement property purchased within a year, provided the new property is also owned at least fifty percent by the same seniors. This reform is designed to alleviate the financial burden on seniors, enabling them to make necessary housing transitions without facing punitive tax consequences, and aligns with the District's goals of supporting aging residents and improving housing stability.