Charles Rangel (D-NY) is the chairman of the powerful House Ways & Means Committee. All tax legislation is supposed to start in that committee. Congressman Rangel has been battling tax troubles over the past year.
His troubles have apparently worsened. Congressman Rangel owns a home in the District of Columbia. That’s not a surprise; many Congressmen and Senators buy homes in or near the District as they spend a lot of time in Washington. Congressman Rangel has taken the Homestead exemption on his DC property tax bill. This break cuts his DC property tax bill.
Congressman Rangel also owns a home in New York. That, too, isn’t a surprise; after all he represents the Empire State in Congress. His New York home is in Harlem (the area he represents) and he has taken the Homestead exemption on that property, too.
There’s a problem here: You can only take the Homestead exemption on your principle residence. You cannot, by definition, have two principle residences. Presumably his New York home is his principle residence and he shouldn’t have been taking the exemption on his DC property. Congressman Rangel likely owes back property taxes, interest, and penalties.
The New York Post writes about this today. As I mentioned it’s only the latest in a string of tax-related problems for the number one tax writer in Congress. Somehow this seems apropros….