Pub. L. 93-407, tit. IV, pt. 2, subpt. f, sec. 435

Sec. 435. (a) An eligible taxpayer may defer each year any real property tax owed in excess of 110 per centum of his immediately preceding year’s real property tax liability. To be eligible for such deferral the taxpayer must— (1) have owned for at least five years the residential real property for which deferral is claimed; (2) certify that the combined household adjusted gross income (for purposes of District income taxes) does not exceed $20,000 in one year; (3) file a written request for deferral on a form prescribed by the Commissioner; (4) certify that such residential real property is the principal place of residence of the taxpayer; (5) certify that the zoning classification of such residential property has not changed in the immediately past fiscal year; (6) certify that increases in the assessed valuation of such residential real property attributable to improvements which increase the intrinsic value of such residential real property are not included in the calculation of the increase in real property tax payable; and (7) certify that the assessment of such residential real property for the immediately previous fiscal year was not the result of an obvious arithmetical error. (b) Taxes deferred under tills section shall bear interest compounded annually. The rate of interest which shall be applied in each year shall be the average Treasury bill rate for the preceding twelve months as certified by the Secretary of the Treasury to the Commissioner. 88 Stat. 1059 (c) No further deferrals of real property tax shall be granted a taxpayer when his deferred tax plus interest equals more than 10 per centum of the current assessed value of his property. (d) Taxes deferred under this section, together with all accumulated interest, shall constitute a preferential lien upon the real property which shall be immediately payable by the seller, transferor, or conveyor whenever the real property is sold, refinanced, transferred, or conveyed in any manner, or whenever additional co-owners (other than spouse) are added to the real property.