Section 47-903 - Imposition of tax; rate; returns; liability for tax(a)(1) There is imposed on the transferor for each transfer at the time the deed is submitted to the Mayor for recordation a tax at the rate of 1.1% of the consideration paid for the transfer; provided, that: (A) If the interest in real property transferred is a lease or ground rent for a term (including renewals) that is at least 30 years, the transfer tax will be computed using the value determined in accordance with paragraphs (2) or (3) of this subsection; and(B) If there is no consideration for a transfer or the consideration is nominal, the rate shall be applied to the fair market value of the real property covered by the interest transferred as determined by the Mayor.(2) If there is a lease or ground rent for a term (including renewals) that is at least 30 years, the transfer tax shall be based upon the average annual rent over the term of the lease, including renewals, capitalized at a rate of 10%, plus any additional actual consideration payable; provided, that the amount to which the rate is applied shall not exceed the fair market value of the real property covered by the interest transferred.(3) If the average annual rent of the lease or ground rent for a term (including renewals) that is at least 30 years cannot be determined, the transfer tax will be based on the greater of: (A) One hundred and five percent of the minimum average annual rent ascertainable from the terms of the lease, capitalized at a rate of 10%, plus any additional consideration payable; or(B) One hundred and fifty percent of the assessed value of the property covered by the interest transferred.(a-4) Beginning October 1, 2006, except for residential properties transferred for a consideration less than $ 400,000, an additional tax of .35% is imposed upon a deed that is subject to the tax under subsection (a)(1) or (3) of this section.(a-5) In addition to the additional tax under subsection (a-4) of this section, for deeds recorded on or after June 1, 2009, an additional tax of 5% is imposed on a deed that is subject to the tax under subsection (a) of this section and that transfers an interest in real property upon which is located a retail service station, as defined in § 36-301.01(15), where the retail service station had, or should have had a business license or endorsement to operate a retail service station within 6 months before the date the deed was timely recorded. The tax collected under this subsection shall be deposited in the General Fund of the District of Columbia.(a-6)(1) Beginning October 1, 2019, an additional tax of 1.05%, in addition to the additional tax imposed by subsection (a-4) of this section, is imposed upon a deed that is subject to the tax under subsection (a)(1) of this section if: (A) The deed transfers real property (or an interest in real property) any part of which is classified as Class 2 Property under § 47-813; and(B) The taxed or imputed consideration for such deed is $2 million or more.(2) For the purposes of this subsection, a deed shall be considered to transfer Class 2 Property if any portion of the building or structure in which the real property (or interest in real property) being transferred by the deed is located is classified as Class 2 Property, regardless of whether that portion is transferred in the deed, if, prior to execution of the deed, the majority ownership of the real property (or interest in real property) being transferred by the deed and a portion of the building or structure that is classified as Class 2 Property was common (whether direct or indirect); provided, that this paragraph shall not apply to a deed solely transferring real property for which the homestead deduction is applied for under § 47-850, if the homestead deduction is applied for simultaneously with the recordation of the deed and the deduction is granted or to an accessory lot included within the deed.(b)(1) Each such deed shall be accompanied by a return in such form as the Mayor may prescribe, executed by all parties to the deed, setting forth the consideration for the deed or debt secured by the deed, and such other information as the Mayor may require.(2) The return shall be an integral part of the deed when prescribed and as required by regulation.(3) The return shall not be confidential or subject to the provisions of §§ 47-1805.04 and 47-4406, unless otherwise provided by regulation.(c) The transferor in a transfer shall have responsibility for payment of the taxes imposed by this section; provided, however, that if the transferor should fail to make payment the transferee shall be jointly and severally liable with the transferor for payment of said taxes. Notwithstanding the foregoing, the United States or the District governments shall not be jointly and severally liable with the transferor.(d) The deed and accompanying return shall be due as prescribed in § 47-1431(a) for the recordation of a deed; provided, that if the deed and return are submitted to the Recorder of Deeds before the due date, the return shall be due and taxes shall be due and owing at the time of submission.(e) Notwithstanding any other provision of this title, the denial of an exemption applied for under authority of § 47-902 shall be subject to the same notice and appeal provisions and procedures as set forth under § 47-1009 relating to the denial of a real property tax exemption applied for under authority of § 47-1002.(f) Funds collected under this section shall be deposited pursuant to § 47-919.Amended by D.C. Law 25-50, § II-S-2183, 70 DCR 010366, eff. 9/6/2023.Sept. 13, 1980, D.C. Law 3-92, § 403, 27 DCR 3390; July 25, 1989, D.C. Law 8-17, § 9, 36 DCR 4160; Apr. 9, 1997, D.C. Law 11-198, § 102, 43 DCR 4569; Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 9, 1997, D.C. Law 11-255, § 59, 44 DCR 1271; June 9, 2001, D.C. Law 13-305, § 505(c), 48 DCR 334; Oct. 26, 2001, D.C. Law 14-42, § 10(e), 48 DCR 7612; Apr. 4, 2003, D.C. Law 14-282, § 11(p), 50 DCR 896; June 5, 2003, D.C. Law 14-307, § 1103, 49 DCR 11664; Mar. 13, 2004, D.C. Law 15-105, §§ 26(c)(4), 82, 51 DCR 881; Dec. 7, 2004, D.C. Law 15-205, § 1233(b), 51 DCR 8441; June 8, 2006, D.C. Law 16-123, § 161(b), 53 DCR 2843; Mar. 2, 2007, D.C. Law 16-192, §§ 1132(b), 2054, 53 DCR 6899; Aug. 16, 2008, D.C. Law 17-219, § 2003(b), 55 DCR 7598; Mar. 25, 2009, D.C. Law 17-353, § 135, 56 DCR 1117; Mar. 3, 2010, D.C. Law 18-111, § 1241, 57 DCR 181; Sept. 26, 2012, D.C. Law 19-171, § 114(b), 59 DCR 6190; Oct. 22, 2015, D.C. Law 21-36, § 7232, 62 DCR 10905; Sept. 11, 2019, D.C. Law 23-16, § 7023, 66 DCR 8621.Application of 14-307: Section 1104 of D.C. Law 14-307 provided: "Sections 1102 and 1003 shall apply as of January 1, 2003."
Exemption from taxation for conversion of a partnership to a limited liability company: Section 3 of D.C. Law 11-38 provided that § 2 of the act shall apply as of July 23, 1994. Exemption from taxation for conversion of a partnership to a limited liability company: For exemption from the transfer tax imposed by this section in connections with the conversion of a partnership to a limited liability company, see § 29-1013(k) as added by § 2(d) of D.C. Law 11-38.
Section 401 of D.C. Law 16-123 provided: "Sec. 401. Sunset. If, pursuant to section 141(a)(1), there are unallocated local revenues, from existing revenue sources, sufficient to fund Title I, then section 141(a)(2) and (3), and section 161 shall sunset.".
Conservation easements, real property transfer tax exemption, see § 42-202 . Limited liability companies, conversion of partnership to limited liability company, real property transfer tax exemption, see § 29-1013. .