When used in this chapter, unless otherwise required by the context:
(1) The word “District” means the geographic boundaries of the District of Columbia.
(2) The word “Mayor” means the Mayor of the District of Columbia, or his or her duly authorized agents or representatives.
(3) The word “deed” means any document, instrument, or writing (other than a lease or ground rent for a term (including renewals) that is less than 30 years), regardless of where made, executed, or delivered whereby any real property in the District, or any interest therein (including an estate for life), is conveyed, vested, granted, bargained, sold, transferred, or assigned.
(4) The words “real property” mean every estate or right, legal or equitable, present or future, vested or contingent in lands, tenements, or hereditaments located in whole or in part within the District.
(5) The word “consideration”, except as otherwise provided in § 47-904, means the price or amount actually paid, or required to be paid for real property including any mortgages, liens, encumbrances thereon, construction loan deeds of trust or mortgages, or permanent loan deeds of trust or mortgages.
(6) The word “person” means an individual, partnership, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, any individual acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, any combination of individuals, and any other form of unincorporated enterprise owned or conducted by 2 or more persons.
(7) The word “deficiency” means the amount or amounts by which the tax imposed by this chapter as determined by the Mayor exceeds the amount shown as the tax upon the return of the person or persons liable for the payment thereof.
(8) The word “taxpayer” means any person required by this chapter to pay a tax, or file a return.
(9) The word “transfer” means the process whereby any real property in the District, or any interest therein is conveyed, vested, granted, bargained, sold, transferred, or assigned from 1 person to another.
(10) The word “transferor” means the person who conveys, vests, grants, bargains, sells, transfers, or assigns any real property or any interest therein in the District, or causes the same through his or her authorized agent.
(11) The word “transferee” means the person to whom any real property in the District, or any interest therein, is conveyed, vested, granted, bargained, sold, transferred, or assigned.
§ 47–902. Enumeration of transfers exempt from tax.
The following transfers shall be exempt from the tax imposed by this chapter:
(1) Repealed;
(2) Transfers of property by the United States of America or the District of Columbia governments, unless its taxation has been authorized by Congress;
(3) Transfers of real property by an institution, organization, corporation, or government receiving a valid real property tax exemption for the real property under § 47-1002 (or exempt from transfer taxes under a law of the United States of America or the District of Columbia); provided further, that this exemption shall not apply to property which is exempt under § 47-1002(29) or § 47-1002(30);
(4) Repealed;
(5) Transfers between spouses, parent and child, grandparent and grandchild, or domestic partners as defined in § 32-701(3), without actual consideration therefor;
(6) Transfers evidenced by deeds of release of property which is security for a debt or other obligation;
(7) Transfers which secure a debt or other obligation;
(8) Transfers which, without additional consideration, confirm, correct, modify, or supplement a transfer previously recorded;
(9) Transfers of property to a qualifying lower income homeownership household in accordance with § 47-3503(b);
(10) Transfers of property to a qualifying nonprofit housing organization in accordance with § 47-3505(b);
(11) Transfers of property to a cooperative housing association in accordance with § 47-3503(b)(2);
(12) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust;
(13) A transfer of property to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust;
(14) A transfer of property by the trustee of a revocable trust if the transfer would otherwise be exempt under this section if made by the grantor of the revocable trust;
(15) The transfer of property to a resident management corporation in accordance with § 47-3506.01;
(16)(A) A transfer of property to an entity in accordance with § 29-204.06;
(B) In order for limited liability companies to receive the exemption provided in subparagraph (A) of this paragraph, the Director of the Department of Finance and Revenue shall be notified, within 30 days, of any change to the members or interests in profits and losses during the 12-month period following the effective date of the conversion so that the applicable transfer tax can be imposed; and
(C) Violation of the provisions of subparagraph (B) of this paragraph shall be punishable pursuant to § 47-918 [repealed];
(17)(A) Transfers with respect to the real property (and any improvements thereon) described as Square 454, Lots 41, 824, 838, 857, 877, 878; the portion of the public alley that reverted to (i) former Lot 820, (which is currently known as Lot 866), and (ii) former Lot 821 (which is currently known as Lot 867) pursuant to the Plat of Alley Closing filed with the Surveyor of the District of Columbia in Liber 17 at folio 74; the portions of the public alley that will revert to Lots 41, 824, 838, 857, 877 and 878, all in Square 454, pursuant to the alley closing approved by the Closing of Public Alleys in Square 454 and Square 455, S.O. 98-194 Act of 1999, effective October 22, 1999 (D.C. Law 13-48; 46 DCR 6768).
(B) The amount of all taxes, fees, and deposits exempt, abated, or waived under this paragraph, section 2(b) of the Gallery Place Economic Development Amendment Act of 2000, effective April 3, 2001 (D.C. Law 13-241; 48 DCR 610) [§ 2-1217.31(b)], and §§ 45-922(24) [§ 42-1102(24)], 47-1002(26), and 47-2005(32) [§ 47-2005(30)], shall not exceed, in the aggregate, $7 million;
(18) Deeds of personal representatives of decedents, acting under the provisions of Title 20, transferring to a distributee, without additional consideration, real property of a decedent or a life estate in real property;
(19)(A) Transfers with respect to the real property (and any improvements thereon) described as Square 299, Lot 831, in connection with the debt or equity financing for the Mandarin Oriental Hotel Project until the Development Sponsor sells the Mandarin Oriental Hotel Project, as evidenced by the recordation of a deed conveying title to Square 299, Lot 831, at which time such amounts shall be due and payable without penalty or interest.
(B) The amount of all taxes, fees, and deposits deferred under this paragraph, section 2(b) of the Mandarin Oriental Hotel Tax Deferral Act of 2002, passed on 2nd reading on September 17, 2002 (Enrolled version of Bill 14-466) [D.C. Law 14-232], and §§ 42-1102(25), 47-1002(27), and 47-2005(33) [§ 47-2005(34)], shall not exceed, in the aggregate, $4 million.
(C) For purposes of this paragraph, the term:
(i) “Development Sponsor” means Portals Hotel Site, LLC, a Delaware limited liability company, and its successors and assigns.
(ii) “Mandarin Oriental Hotel Project” means the acquisition and initial development, construction, equipping, and furnishing of a Mandarin Oriental hotel within the Portals project, located on Square 299, Lot 831, consisting of a 400-room hotel with approximately 33,000 square feet of associated meeting and banquet space, 2 restaurants, a health spa and fitness center totaling approximately 10,000 square feet, and approximately 90,000 square feet of public parking space for approximately 200 cars.
(iii) “Mandarin TIF Bonds” means the tax increment financing bonds issued in connection with the Mandarin Oriental Hotel Project pursuant to the Tax Increment Revenue Bonds Mandarin Hotel Project Emergency Approval Resolution of 2000, effective March 7, 2000 (Res. 13-510; 47 DCR 2133), and the Mandarin Hotel Project Modification Approval Resolution of 2000, effective December 19, 2000 (Res. 13-745; 48 DCR 83).
(D) This paragraph shall apply upon the closing of the sale of the Mandarin TIF Bonds;
(20) Transfers pursuant to a decree of divorce or of separate maintenance or pursuant to a written instrument incident to such divorce or separation;
(21) Transfers by an entity described in paragraph (3) of this section of a lease or ground rent for a term (including renewals) that is at least 30 years;
(22)(A) Transfers of residential real property, without consideration for the transfer, to the trustee of a special needs trust established for the benefit of a trust beneficiary who has a disability, as defined in section 1614(a)(3) of the Social Security Act, 86 Stat. 1471; 42 U.S.C. § 1382c(a)(3)), or from the trustee of a special needs trust that, by its terms, terminates upon the death of the trust beneficiary with a disability.
(B) For the purposes of subparagraph (A) of this paragraph, a trust is a special needs trust if the trust instrument:
(i) States, among its purposes, that the trust assets are not intended to be counted in determining the beneficiary’s eligibility for needs-based governmental benefits; and
(ii)(I) Names the beneficiary with a disability as the sole trust beneficiary during his or her lifetime; and
(II) Provides that the beneficiary with a disability may not serve as trustee.
(23) Transfers of property to a qualifying eligible household pursuant to the Inclusionary Zoning Program established by subchapter II-A of Chapter 10 of Title 6.
(24) Transfer of real property to the District of Columbia, without consideration for the transfer, at the request of the District of Columbia, and conveyed as a bona fide gift to the District of Columbia.
(25) Transfers of property to which there is a valid certification by the Mayor that both the property and transferor are eligible for exemption from property taxation pursuant to § 47-1005.02; provided, that, unless waived by regulation, a copy of the certification shall accompany the deed at the time it is submitted for recordation.
(26) Transfers of property transferred to a named beneficiary of a revocable transfer on death deed under Subchapter IV of Chapter 6 of Title 19, by reason of the death of the grantor of the revocable transfer on death deed.
(27) The transfer of real and personal property between the electric company and the District pursuant to [§ 34-1313.11(c)].
(28)(A) Transfers with respect to the real property (and any improvements thereon) described as Square 5633, Lots 802, 803, 804, 805, 806, 807, 808, 809, 810, 811, 812, 813, 814, 815, 816, 817, 818, 822, 823, 824, 825, 826, 827, 828, 829, 830, 831, 7000, 7009, and 7010, as evidenced by the recordation of a deed conveying title to the real property between October 1, 2020, and December 31, 2020.
(B) The amount of all taxes, fees, and deposits exempted under this paragraph and § 42-1102(36), shall not exceed, in the aggregate, $420,840.
§ 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-1) Repealed.
(a-2) Repealed.
(a-3) Repealed.
(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) [Repealed].
(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.
§ 47–904. Consideration; basis for computation of tax.
Where no price or amount is paid or required to be paid for real property or where such price or amount is nominal, the consideration for the deed to such property, shall, for purposes of the tax imposed by this chapter, be construed to be the fair market value of the real property, and the tax shall be based upon such fair market value. In any such case, the return required to be filed with the deed shall contain such information as to the fair market value of the real property as the Mayor shall require. Whenever, in the opinion of the Mayor, a return does not contain sufficient information as to the fair market value of such real property, the Mayor is authorized to make a determination thereof from the best information available.
§ 47–905. Investigation by Mayor to determine correctness of documents; production of books and records; examination of witnesses; service of summons; punishment for disobedience. [Repealed]
Repealed.
§ 47–906. Conditions for recordation. [Repealed]
Repealed.
§ 47–907. Presumption; burden of proof.
For purpose of proper administration of this chapter and to prevent evasion of the tax hereby imposed, it shall be presumed that all transfers of real property are taxable and the burden shall be upon the taxpayer to show that a transfer is exempt from tax.
§ 47–908. Deficiencies in tax. [Repealed]
Repealed.
§ 47–909. Interest; waiver; extension of time for payment. [Repealed]
Repealed.
§ 47–910. Compromise; written agreements for settlement of tax liability; illegal acts; prosecutions.
Repealed.
§ 47–911. Compromise of penalties. [Repealed]
Repealed.
§ 47–912. Limitations; time for making assessments; extension of time by agreement; suspension of running of limitations. [Repealed]
Repealed.
§ 47–913. Administration of oaths and affidavits. [Repealed]
Repealed.
§ 47–914. Judicial review.
Any person aggrieved by an assessment of a deficiency in tax finally determined by the Mayor under the provisions of § 47-908 [repealed] may appeal to the Superior Court of the District of Columbia in the same manner and to the same extent as set forth in §§ 47-3303, 47-3304, 47-3306, 47-3307, and 47-3308.
§ 47–915. Refunds; collection. [Repealed]
Repealed.
§ 47–916. Issuance of rules and regulations to carry out chapter.
The Mayor is authorized to issue such rules and regulations as he or she may deem necessary to carry out the purposes of this chapter.
§ 47–917. Abatement authorized. [Repealed]
Repealed.
§ 47–918. Penalty; prosecutions. [Repealed]
Repealed.
§ 47–919. Disposition of monies collected.
All monies collected under this chapter shall be deposited in the General Fund, except that:
(a) In fiscal years ending before October 1, 2023:
(1) 15% of the monies collected under this chapter shall be deposited into the Housing Production Trust Fund established by § 42-2802 ("Housing Production Trust Fund");
(2) 85% of the monies collected under this chapter for the transfer of Lots 836, 837 and 855 in Square 37, or such successor record or assessment and taxation lots as may be created through future subdivision or creation of condominium units, shall be deposited in the West End Library and Fire Station Maintenance Fund established by § 1-325.181 ("West End Library and Fire Station Maintenance Fund");
(b) In Fiscal Years 2024, 2025, 2026, and 2027:
(1) The lesser of the following amounts shall be deposited in the Housing Production Trust Fund:
(A) 15% of the monies collected under this chapter; or
(B) 102% of the amount deposited into the Housing Production Trust Fund in the prior fiscal year pursuant to this section;
(2) 85% of the monies collected under this chapter for the transfer of Lots 836, 837 and 855 in Square 37, or such successor record or assessment and taxation lots as may be created through future subdivision or creation of condominium units, shall be deposited in the West End Library and Fire Station Maintenance Fund; and
(c) In fiscal years beginning on or after October 1, 2027:
(1) 15% of the monies collected under this chapter shall be deposited into the District of Columbia Housing Authority capital project DEVELOPMENT AND REHABILITATION-DCHA.
(2) 15% of the monies collected under this chapter shall be deposited into the Housing Production Trust Fund; and
(3) 70% of the monies collected under this chapter for the transfer of Lots 836, 837 and 855 in Square 37, or such successor record or assessment and taxation lots as may be created through future subdivision or creation of condominium units, shall be deposited in the West End Library and Fire Station Maintenance Fund.
§ 47–920. Issuance of rules and regulations for administration of chapter.
The Mayor is authorized to issue such rules and regulations necessary for the proper and efficient administration of this chapter.
