Presidential adviser Karl Rove may live in Washington. But in his heart -- and for voting purposes -- he remains a Texan. Which means he is not legally entitled to the homestead deduction and property tax cap he's been getting on his Palisades home for the past 3 1/2 years.
This week, the D.C. tax collector was alerted to the problem. And Rove agreed to reimburse the District for an estimated $3,400 in back taxes, city officials said. But now some Lone Star officials also are wondering about the place Rove calls home.
In a letter released yesterday by the White House, the D.C. Office of Tax and Revenue accepted blame for the error, which also has affected numerous members of Congress. The homestead exemption gives District taxpayers a substantial tax break on their primary residences. But starting in 2002, a change in the law made it available only to District property owners who do not vote elsewhere, city officials said. That made Rove, and many others, ineligible.
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/02/AR2005090202397.html