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D.C. error gave McCollum a tax break

Her office and city officials said she was among members of Congress mistakenly given homestead credits on Washington residences. She now faces a $4,698 tax bill.

Last update: April 13, 2009 - 8:01 PM

WASHINGTON -- Rep. Betty McCollum, D-Minn., is among several members of Congress who inadvertently received a property tax break intended for residents of the District of Columbia, a city official said Monday.

The tax break, worth several thousand dollars since she bought her Dupont Circle condo in 2003, can be repaid without penalties or interest, according to Natalie Wilson, a spokeswoman for the D.C. Office of Tax and Revenue.

McCollum was among a small group of out-of-town lawmakers mistakenly given the credit, even though they didn't seek or apply for it, according to D.C. officials and McCollum's office.

Bill Harper, McCollum's chief of staff, said Monday that she learned of the error after checking with District tax officials in response to published reports in Roll Call, a Capitol Hill newspaper. The paper's review showed that some members of Congress had improperly benefited from the homestead tax program.

Roll Call reported Monday that McCollum was among the "mistaken tax beneficiaries," along with a handful of Republicans, including Tom Petri of Wisconsin.

Harper said he was contacted by the Democratic Congressional Campaign Committee last month and alerted to check her property tax status, as were other caucus members with residences in D.C. 

"We had no presumption that anything was wrong," Harper said. "She had no knowledge that anything was wrong."

As soon as McCollum found out she was receiving the deduction -- worth about $573 on this year's tax bill -- she filed papers to cancel it, retroactive to March 24, 2003, when she bought the condo.

According to newly updated city records, that leaves McCollum with a property tax bill of $4,698, including current and back taxes, but no penalties or interest.

Harper said the error was not McCollum's, but rather that of city officials who mistakenly applied the homestead tax credit from the previous owner of her one-bedroom condo.

"Betty was under the presumption that unless you file [for the deduction], you don't get it," Harper said. "It's more of a reflection on the dysfunction of the D.C. government."

Wilson said city officials do not dispute that the error was the city's.

Tax records show McCollum bought the property for $180,000. It is currently assessed at $253,250.

Under the city's homestead program, an enrolled residence gets a reduction of $67,500 on its assessed value, which can save hundreds of dollars annually. McCollum's primary residence is in her district in St. Paul. The D.C. credit is intended for people who live and vote in the federal district.

Kevin Diaz • 202-408-2753

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