D.C. Code § 47-812

Current through codified legislation effective September 4, 2024

Section 47-812 - Establishment of rates

(a) The Council, after public hearing, shall by October 15 of each year establish, by act, rates of taxation, by class, as provided in § 47-813, and the rates shall be applied, during the tax year, to the assessed value of all real property subject to taxation. The Council, acting by resolution, may extend the time for establishing the rates of taxation. If the Council does extend the time for establishing the rates of taxation on real property, it must establish those rates for the tax year by permanent legislation. If the Council does not establish the rates of taxation of real property by October 15, and does not extend the time for establishing rates, the rates of taxation applied for the prior year shall be the rates of taxation applied during the tax year.

(a-1) Notwithstanding the provisions of subsection (a) of this section, the real property tax rates for taxable property in the District of Columbia for the tax year beginning October 1, 1994, and ending September 30, 1995, shall be the same rates in effect for the tax year beginning October 1, 1993, and ending September 30, 1994.

(a-2) Notwithstanding the provisions of subsection (a) of this section, the real property tax rates for taxable real property in the District of Columbia for the tax year beginning October 1, 1995, and ending September 30, 1996, shall be the same rates in effect for the tax year beginning October 1, 1993, and ending September 30, 1994.

(b) Notwithstanding the provisions of subsection (a) of this section, the following real property tax rates are established for taxable real property in the District of Columbia for the real property tax year beginning October 1, 1995, and ending September 30, 1996:

(1) $0.3659 for each $100 of assessed value for Class 1 Property;

(2) $0.5869 for each $100 of assessed value for Class 2 Property;

(3) $0.7050 for each $100 of assessed value for Class 3 Property;

(4) $0.8194 for each $100 of assessed value for Class 4 Property; and

(5) $1.9055 for each $100 of assessed value for Class 5 Property.

(b-1) Notwithstanding the provisions of section 413 [Pub. L. 93-407, title IV, § 413], subsection (a) of this section, or any other law imposing requirements on the enactment of these tax rates, the following real property tax rates are established for taxable real property in the District of Columbia for the real property tax year beginning October 1, 1996, and ending September 30, 1997:

(1) $0.3936 (for each $100 of assessed value) for Class One Property;

(2) $0.6314 (for each $100 of assessed value) for Class Two Property;

(3) $0.7585 (for each $100 of assessed value) for Class Three Property;

(4) $0.8815 (for each $100 of assessed value) for Class Four Property; and

(5) $2.0500 (for each $100 of assessed value) for Class Five Property.

(b-2) Notwithstanding the provisions of subsection (a) of this section, the following real property tax rates are established for taxable real property in the District of Columbia for the tax year beginning October 1, 1997, and ending September 30, 1998:

(1) $0.2400 for each $100 of assessed value for Class 1 Property;

(2) $0.3850 for each $100 of assessed value for Class 2 Property;

(3) $0.4625 for each $100 of assessed value for Class 3 Property;

(4) $0.5375 for each $100 of assessed value for Class 4 Property; and

(5) $1.2500 for each $100 of assessed value for Class 5 Property.

(b-3) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and the special real property tax rates for taxable property in the District of Columbia for the tax year beginning October 1, 1999, and ending September 30, 2000, shall be:

(1) $0.96 for each $100 of assessed value for Class 1 Property;

(2) $1.34 for each $100 of assessed value for Class 2 Property;

(3) $1.85 for each $100 of assessed value for Class 3 Property; and

(4) $2.05 for each $100 of assessed value for Class 4 Property.

(b-4)

(1) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and the special real property tax rates for taxable property in the District of Columbia for the tax year beginning October 1, 2000, and ending September 30, 2001, shall be:

(A) $0.96 for each $100 of assessed value for Class 1 Property;

(B) $1.15 for each $100 of assessed value for Class 2 Property;

(C) $1.85 for each $100 of assessed value for Class 3 Property; and

(D) $1.95 for each $100 of assessed value for Class 4 Property.

(2) Paragraph (1) of this subsection shall not apply if the certification by the Chief Financial Officer required by § 47-387.01 demonstrates that the accumulated general fund balance for the immediately preceding fiscal year is below 5% of the general fund operating budget for the current fiscal year, the nominal GDP growth is less than or equal to 3.5% or the real GDP growth is less than or equal to 1.7%.

(b-5)

(1) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and the special real property tax rates for taxable property in the District of Columbia for the tax year beginning October 1, 2001, and ending September 30, 2002, shall be:

(A) $0.96 for each $100 of assessed value for Class 1 Property; and

(B) $1.85 for each $100 of assessed value for Class 2 Property.

(2) Repealed.

(b-6) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and the special real property tax rates for taxable real property in the District of Columbia for the tax year beginning October 1, 2002, shall be:

(1) $0.96 for each $100 of assessed value for Class 1 Property;

(2) $1.85 for each $100 of assessed value for Class 2 Property; and

(3) $5.00 for each $100 of assessed value for Class 3 Property.

(b-7) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and special real property tax rates for taxable real property in the District of Columbia for the tax year beginning October 1, 2005, shall be:

(1) $0.92 for each $100 of assessed value for Class 1 Property;

(2) $1.85 for each $100 of assessed value for Class 2 Property; and

(3) $5.00 for each $100 of assessed value for Class 3 Property.

(b-8)

(1)

(A) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and special real property tax rates for taxable Class 1 Property in the District of Columbia for the tax year beginning October 1, 2006, and each tax year thereafter, shall be established as follows:

(i)

(I) For the tax year beginning October 1, 2006, the Mayor shall compute the real property tax rate (rounded up to the nearest penny) for Class 1 Properties calculated to yield in the tax year the same amount of taxes estimated to be collected, as certified in the latest revenue estimate, during the tax year beginning October 1, 2005, plus 9%.

(II) Before September 16, 2006, the Mayor shall submit to the Council the real property tax rate computed under sub-sub-subparagraph (I) of this sub-subparagraph.

(ii)

(I) For the tax year beginning October 1, 2007, the Mayor shall compute the real property tax rate (rounded up to the nearest penny) for Class 1 Properties calculated to yield in the tax year the same amount of taxes estimated to be collected, as certified in the latest revenue estimate, during the tax year beginning October 1, 2006, plus 8%.

(II) Before September 16, 2007, the Mayor shall submit to the Council the real property tax rate computed under sub-sub-subparagraph (I) of this sub-subparagraph.

(iii)

(I) For the tax year beginning October 1, 2008, the Mayor shall compute the real property tax rate (rounded up to the nearest penny) for Class 1 Properties calculated to yield in the tax year the same amount of taxes estimated to be collected, as certified in the latest revenue estimate, during the tax year beginning October 1, 2007, plus 7%.

(II) Before September 16, 2008, the Mayor shall submit to the Council the real property tax rate computed under sub-sub-subparagraph (I) of this sub-subparagraph.

(iv)

(I) For the tax year beginning October 1, 2009, and each tax year thereafter, the Mayor shall compute the real property tax rate (rounded up to the nearest penny) for Class 1 Properties calculated to yield in the tax year the same amount of taxes estimated to be collected during the preceding tax year, plus the lesser of:

(aa) Seven percent; or

(bb) The percentage increase in the total aggregate assessment of taxable real property for Class 1 Properties.

(II) By January 5 of the tax year, the Mayor shall submit to the Council the real property tax rate computed under sub-sub-sub-paragraph (I) of this sub-subparagraph.

(B) Notwithstanding the provisions of subparagraph (A) of this paragraph, if, for the current tax year, the total aggregate assessment of taxable real property for Class 1 Properties is estimated to decrease, the real property tax rate for Class 1 Properties shall be the real property tax rate for the prior tax year.

(2) Repealed.

(b-9)

(1) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and special real property tax rates for taxable Class 2 Properties in the District of Columbia for the tax year beginning October 1, 2008, shall be:

(A) For the first $3 million of assessed value, $1.65 of each $100 of assessed value; and

(B) For the portion of the assessed value exceeding $3 million, $1.85 of each $100 of assessed value.

(2)

(A) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and special real property tax rates for taxable Class 2 Property in the District of Columbia for the tax year beginning October 1, 2009, and each tax year thereafter, shall be:

(i) For the first $3 million of assessed value, the rate as established in subparagraph (B) of this paragraph; provided, that for the tax year beginning October 1, 2011, the tax rate shall be $1.65 of each $100 of assessed value; and

(ii) For the portion of the assessed value exceeding $3 million, $1.85 of each $100 of assessed value.

(B)

(i) The Chief Financial Officer shall compute the real property tax rate for the first $3 million of assessed value for taxable Class 2 Properties in the District of Columbia, for the tax year beginning October 1, 2009, as follows:

(I) The Chief Financial Officer shall subtract $1,312,793,900 from the estimated real property taxes to be collected for Class 2 Properties based upon a rate of $1.85 of each $100 of assessed value.

(II) The Chief Financial Officer shall compute the real property tax rate (rounded up to the nearest penny) for the first $3 million of assessed value for taxable Class 2 Properties by taking the amount yielded by sub-sub-subparagraph (I) of this sub-subparagraph and, if it is a positive number, applying this amount to reduce the real property tax rate; provided, that the real property tax rate shall not be less than $.90 of each $100 of assessed value.

(ii) The Chief Financial Officer shall compute the real property tax rate for the first $3 million of assessed value for taxable Class 2 Properties in the District of Columbia, for the tax year beginning October 1, 2010, and each tax year thereafter, as follows:

(I) The Chief Financial Officer shall multiply the total amount of taxes estimated to be received for taxable Class 2 Properties in the District of Columbia for the prior fiscal year by 110%.

(II) The Chief Financial Officer shall subtract the amount yielded by sub-sub-subparagraph (I) of this sub-subparagraph from the estimated real property taxes to be collected in the tax year based upon the applicable rates in effect for Class 2 Properties during the prior tax year.

(III) The Chief Financial Officer shall compute the real property tax rate (rounded up to the nearest penny) for the first $3 million of assessed value for taxable Class 2 Properties by taking the amount yielded by sub-sub-subparagraph (II) of this sub-subparagraph and, if it is a positive number, applying this amount to reduce the real property tax rate; provided, that the real property tax rate shall not be less than $.90 of each $100 of assessed value.

(iii) By January 5 of each tax year, the Chief Financial Officer shall submit to the Council the real property tax rate computed under this subparagraph.

(C) Notwithstanding any other provision of this section, the sum of the real property tax rates and special real property tax rates for taxable Class 2 Properties in the District of Columbia beginning October 1, 2018, and each tax year thereafter shall be:

(i) $1.65 for each $100 of assessed value if the real property's assessed value is not greater than $5 million;

(ii) $1.77 for each $100 of assessed value if the real property's assessed value is greater than $5,000,000 but not greater than $10 million; or

(iii) $1.89 for each $100 of assessed value if the real property's assessed value is greater than $10 million[.]

(D)

(i) [Repealed].

(ii) IST revenue collected during the period beginning on January 1, 2019 and ending on September 30, 2019, shall be directed to the unassigned balance of the General Fund for purposes consistent with the Fiscal Year 2019 Revised Local Budget Emergency Act of 2019 [D.C. Act 23-75, effective July 8, 2019, 66 DCR 8078].

(3) [Repealed].

(b-10)

(1) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and special real property tax rates for taxable Class 3 Properties in the District of Columbia for the tax year beginning October 1, 2010, and each tax year thereafter, shall be $5 for each $100 of assessed value.

(2) Notwithstanding the provisions of subsection (a) of this section, the sum of the real property tax rates and special real property tax rates for taxable Class 4 Properties in the District of Columbia for the tax year beginning October 1, 2010, and each tax year thereafter, shall be $ 10 for each $ 100 of assessed value.

(b-11) [Repealed by 2020 Amendment.]

(c) Pursuant to section 9 of the General Obligation Bond Act of 1994, effective May 3, 1994 (D.C. Law 10-116; 41 DCR 1224), the following real property special tax rates are established for taxable real property in the District of Columbia for the real property tax year beginning October 1, 1995, and ending September 30, 1996:

(1) $0.5941 for each $100 of assessed value for Class 1 Property;

(2) $0.9531 for each $100 of assessed value for Class 2 Property;

(3) $1.1450 for each $100 of assessed value for Class 3 Property;

(4) $1.3306 for each $100 of assessed value for Class 4 Property; and

(5) $3.0945 for each $100 of assessed value for Class 5 Property.

(c-1) Notwithstanding the provisions of section 413, subsection (c) of this section, or any other law imposing requirements on the enactment of these tax rates, pursuant to section 9 of the General Obligation Bond Act of 1994, effective May 3, 1994 (D.C. Law 10-116; 41 DCR 1224), the following real property special tax rates are established for taxable real property in the District of Columbia for the real property tax year that begins October 1, 1996, and ends September 30, 1997:

(1) $0.5664 (for each $100 of assessed value) for Class One Property;

(2) $0.9086 (for each $100 of assessed value) for Class Two Property;

(3) $1.0915 (for each $100 of assessed value) for Class Three Property;

(4) $1.2685 (for each $100 of assessed value) for Class Four Property; and

(5) $2.9500 (for each $100 of assessed value) for Class Five Property.

(c-2) Pursuant to section 9 of the General Obligation Bond Act of 1996, effective October 1, 1996 (D.C. Law 11-162; 43 DCR 5432), the following real property special tax rates are established for taxable real property in the District of Columbia for the tax year beginning October 1, 1997, and ending September 30, 1998:

(1) $0.7200 for each $100 of assessed value for Class 1 Property;

(2) $1.1550 for each $100 of assessed value for Class 2 Property;

(3) $1.3875 for each $100 of assessed value for Class 3 Property;

(4) $1.6125 for each $100 of assessed value for Class 4 Property; and

(5) $3.7500 for each $100 of assessed value for Class 5 Property.

(d) For purposes of this section, the terms "Class 1 Property", "Class 2 Property", "Class 3 Property", "Class 4 Property", and "Class 5 Property" each has the same meaning as the terms have in § 47-813.

(e) [Repealed].

(f) [Repealed].

D.C. Code § 47-812

Amended by D.C. Law 23-149, § VII-H-7103 , 67 DCR 10493, eff. 12/3/2020.

Sept. 3, 1974, 88 Stat. 1052, Pub. L. 93-407, title IV, § 412; June 15, 1976, D.C. Law 1-70, title III, §§ 302(a), 305, 23 DCR 538; Mar. 3, 1979, D.C. Law 2-130, § 3(a), 25 DCR 2517; Nov. 20, 1979, D.C. Law 3-37, § 2(a), 26 DCR 1564; Mar. 13, 1985, D.C. Law 5-125, § 2, 31 DCR 5180; Nov. 19, 1985, D.C. Law 6-51, § 3(a), 32 DCR 5681; Oct. 1, 1987, D.C. Law 7-28, § 2, 34 DCR 5094; Sept. 29, 1988, D.C. Law 7-161, § 2(a), (b), 35 DCR 5730; Oct. 19, 1989, D.C. Law 8-46, § 2(b), (c), 36 DCR 5783; Sept. 27, 1990, D.C. Law 8-172, § 2(d), 37 DCR 4844; Mar. 7, 1992, D.C. Law 9-62, § 2(b), (c), 38 DCR 7291; Oct. 7, 1992, D.C. Law 9-177, § 2, 39 DCR 5868; Jan. 26, 1994, D.C. Law 10-66, §2, 40 DCR 7358; June 14, 1994, D.C. Law 10-127, § 5(a), 41 DCR 2050; Sept. 26, 1995, D.C. Law 11-52, § 104(a), 42 DCR 3684; Mar. 5, 1996, D.C. Law 11-98, § 1301, 43 DCR 5; Apr. 26, 1996, 110 Stat. 1321 211, Pub. L. 104-134, § 135(1); Apr. 9, 1997, D.C. Law 11-222, § 2, 44 DCR 108; Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 10, 1998, D.C. Law 12-122, § 2(a), 45 DCR 2300; Oct. 20, 1999, D.C. Law 13-38, § 2702(b), 46 DCR 6373; Apr. 12, 2000, D.C. Law 13-91, § 156(b), 47 DCR 520; June 5, 2003, D.C. Law 14-307, § 1303(a), 49 DCR 11664; Oct. 20, 2005, D.C. Law 16-33, §§ 1262(a), 1272, 52 DCR 7503; Mar. 20, 2008, D.C. Law 17-123, § 3(a), 55 DCR 1513; Aug. 15, 2008, D.C. Law 17-216, § 4(a), 55 DCR 7500; Aug. 16, 2008, D.C. Law 17-219, § 7006, 55 DCR 7598; Sept. 24, 2010, D.C. Law 18-223, § 2043(a), 57 DCR 6242; Sept. 14, 2011, D.C. Law 19-21, § 8102; Sept. 20, 2012, D.C. Law 19-168, § 7092, 59 DCR 8025; Feb. 26, 2015, D.C. Law 20-155, § 7082, 61 DCR 9990; Mar. 29, 2018, D.C. Law 22-81, § 2, 65 DCR 1582; Oct. 30, 2018, D.C. Law 22-168, § 6004(a)(1), 65 DCR 9388; Mar. 22, 2019, D.C. Law 22-258, § 2(a), 66 DCR 1362; Sept. 11, 2019, D.C. Law 23-16, §§ 7032, 7042, 66 DCR 8621.

Application of Law 14-307: Section 1304 of D.C. Law 14-307 provided: "Sections 1302 and 1303 shall apply as of October 1, 2002."

Section 2 of the Act of March 5, 1981, D.C. Law 3-136, established the rates of taxation on taxable real property in the District of Columbia for the tax year beginning July 1, 1980, and ending June 30, 1981, as follows: $1.22 for each $100 of assessed value for Class 1 Property; $1.54 for each $100 of assessed value for Class 2 Property; and $2.13 for each $100 of assessed value for Class 3 Property.

Section 2(a) of D.C. Law 6-51 established rates of taxation on taxable real property in the District of Columbia for the tax year beginning July 1, 1985, and ending June 30, 1986, as follows: $1.0615 for each $100 of assessed value for Class 1 property; $1.3402 for each $100 of assessed value for Class 2 property; $1.5712 for each $100 of assessed value for Class 3 property; and $1.7662 for each $100 of assessed value for Class 4 property.

Section 2(a) of D.C. Law 6-153 established rates of taxation on taxable real property in the District of Columbia for the tax year beginning July 1, 1986, and ending June 30, 1987 as follows: $0.8686 for each $100 of assessed value for Class 1 Property; $1.0966 for each $100 of assessed value for Class 2 Property; $1.2957 for each $100 of assessed value for Class 3 Property; and $1.4454 for each $100 of assessed value for Class 4 Property.

Real property special tax rates established: Section 2(b) of D.C. Law 6-153 established rates for the real property special tax on taxable real property in the District of Columbia for the tax year beginning July 1, 1986, and ending June 30, 1987 as follows: $0.3514 for each $100 of assessed value for Class 1 Property; $0.4434 for each $100 of assessed value for Class 2 Property; $0.5243 for each $100 of assessed value for Class 3 Property; and $0.5846 for each $100 of assessed value for Class 4 Property.

General obligation bonds authorized: D.C. Law 6-60, effective November 19, 1985, authorized the issuance of general obligation bonds of the District of Columbia for the purpose of financing certain capital projects and refunding certain capital indebtedness of the District of Columbia.

Mayor authorized to issue rules: Section 4 of D.C. Law 6-51 provided that the Mayor shall issue rules to implement the provisions of the act pursuant to subchapter I of Chapter 5 of Title 2.

Section 2(d) of D.C. Law 6-153 provided that the Mayor shall issue rules to implement the provisions of the section.

Calculated rates for tax year 1995: The following calculated rates became the tax rates for tax year 1995 on December 16, 1994, pursuant to Resolution 10-443 and D.C. Code § 47-812(a) (See 41 DCR 5987):

Tax Year 1995 Real Property Tax Rates Establishment Extension Emergency Resolution of 1994: Pursuant to Resolution 10-443, effective October 4, 1994, the Council extended, on an emergency basis, the time for establishing the real property tax rates for tax year 1995 until December 5, 1994.

Definitions applicable: The definitions in § 47-803 apply to this section.

Real property special tax rates established: Section 2(b) of D.C. Law 6-51, effective November 19, 1985, established rates for the real property special tax on taxable real property in the District of Columbia for the tax year beginning July 1, 1985, and ending June 30, 1986, as follows: $0.1585 for each $100 of assessed value for Class 1 property; $0.1998 for each $100 of assessed value for Class 2 property; $0.2488 for each $100 of assessed value for Class 3 property; and $0.2638 for each $100 of assessed value for Class 4 property.

Definitions applicable: Section 2(c) of D.C. Law 6-51 provided that, for purposes of this section, the terms "Class 1 property", "Class 2 property", "Class 3 property", and "Class 4 property" each has the meaning given to the term in subsection (c-1)(1), (2), (3), and (4) of § 47-813, as amended by § 3(b) of the act.

Section 2(c) of D.C. Law 6-153 provided that, for purposes of this section, the terms "Class 1 Property", "Class 2 Property", "Class 3 Property", and "Class 4 Property" each has the meaning given each term in subsection (c-1)(1), (2), (3), and (4) of § 47-813, as amended by § 3b of the act.

General obligation bonds authorized: D.C. Law 5-115 authorized the issuance of general obligation bonds of the District of Columbia for the purpose of financing certain capital projects and refunding certain capital indebtedness of the District of Columbia.

An annual tax is imposed on real property in the District of Columbia by §47-811 and by the General Obligation Bond Act of 1996, effective October 1, 1996 (D.C. Law 11-162; 43 DCR 5432) (the "1996 Act"), which is not codified. The 1996 Act established a real property special tax to pay debt service on general obligation bonds issued by the District of Columbia. Prior to the 1996 Act, a real property special tax was imposed by the General Obligation Bond Act of 1994, effective May 3, 1994 (D.C. Law 10-116; 41 DCR 1224). The real property tax rates and real property special tax rates are established by this section ( § 47-812), either separately or as a sum.

Applicability and expiration of subtitle EE of title I, §§ 1261 to 1265, of D.C. Law 16-33: Sections 1263 and 1264 of D.C. Law 16-33, as amended by section 5(g) of D.C. Law 16-191 and D.C. Law 17-219, § 7068(c), (d), provided:

"Sec. 1263. Applicability; conditional effect.

"(a) Section 1262 shall apply for taxable years beginning after September 30, 2005."

"(b) Repealed.

"(c) Repealed.

"Sec. 1264. Repealed."

Section 5(b) of D.C. Law 17-216 provided that section 4(a) shall apply to real property tax years beginning after September 30,2008.

Section 7092 of D.C. Law 19-168 would have substituted "$1.55" for "$1.65" in (b-9)(1)(A) and (b-9)(2)(A)(i); and would have substituted "October 1, 2013" for "October 1, 2011" in (b-9)(2)(A)(i).

Section 7093 of D.C. Law 19-168 provided that § 7092 of the act shall apply upon certification by the Chief Financial Officer that sufficient revenue is available in the June 2012, September 2012, or December 2012 revenue estimates to fund section 1002(a)(1) through (14) of the Revised Revenue Estimate Contingency Priority List Act of 2012 (D.C. Law 19-168). This contingency was not met.

Applicability

Applicability of D.C. Law 22-81: § 3 of D.C. Law 22-81 provided that the change made to this section by § 2 of D.C. Law 22-81 is subject to the inclusion of the law's fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

National Capital Revitalization Corporation, "property tax increment revenues" defined, see § 2-1219.01 . Rental housing, new, vacant, and rehabilitated accommodations, real property tax abatement, see § 42-3508.02 . .