Source: https://development.code.dccouncil.us/dc/council/code/sections/47-812.html
Timestamp: 2019-04-23 20:59:04+00:00

Document:
D.C. Law Library - § 47–812. Establishment of rates.
↪ § 47–812. Establishment of rates.
§ 47–813. Classes of property.
§ 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.
(5) $1.9055 for each $100 of assessed value for Class 5 Property.
(5) $2.0500 (for each $100 of assessed value) for Class Five Property.
(5) $1.2500 for each $100 of assessed value for Class 5 Property.
(4) $2.05 for each $100 of assessed value for Class 4 Property.
(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) $1.85 for each $100 of assessed value for Class 2 Property.
(3) $5.00 for each $100 of assessed value for Class 3 Property.
(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.
(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.
(B) For the portion of the assessed value exceeding $3 million, $1.85 of each $100 of assessed value.
(ii) For the portion of the assessed value exceeding $3 million, $1.85 of each $100 of assessed value.
(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.
(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.
(D)(i) Notwithstanding subparagraph (C)(iii) of this paragraph, and except as provided in sub-subparagraph (ii) of this subparagraph, for the tax year beginning October 1, 2019, and each tax year thereafter, the recurring annual revenue collected pursuant to the Internet Sales Tax Amendment Act of 2018, passed on 2nd reading on December 4, 2018 (Enrolled version of Bill 22-914) ("IST revenue"), as certified by the Chief Financial Officer in the quarterly revenue estimate issued in February 2019, and each February thereafter, shall, to the extent the IST revenue is in excess of that required for the financial plan for the current fiscal year ("excess IST revenue"), reduce the property tax rate under subparagraph (C)(iii) of this paragraph, as determined at the time of the February quarterly revenue estimate, to the lowest tax rate rounded up to the nearest penny per $100 of assessed value; provided, that the rate is no less than $1.85 per $100 of assessed value; provided further, that if the tax rate remains greater than $1.85 per $100 of assessed value, for the tax year beginning October 1, 2020, and each tax year thereafter, the excess IST revenue shall reduce the property tax rate to the lowest tax rate rounded up to the nearest penny per $100 of assessed value that is at least $1.85 per $100 of assessed value.
(ii) For the period beginning on January 1, 2019, through September 30, 2019, IST revenue shall be directed to the Commission on the Arts and Humanities, established by [§ 39-203], to support the functions, purposes, and costs of the Commission.
(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.
(5) $3.0945 for each $100 of assessed value for Class 5 Property.
(5) $2.9500 (for each $100 of assessed value) for Class Five Property.
(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.
This section is referenced in § 47-811, § 47-815, § 47-1005.01, and § 47-4640.
D.C. Law 13-38 added subsec. (b-3), (b-4) and (b-5).
D.C. Law 13-91 validated a previously made technical amendment in subsec. (b-2)(3).
D.C. Law 16-33, added subsecs. (b-7) and (b-8).
D.C. Law 17-123 repealed subsec. (b-8)(2)(A) and added subsec. (b-9). Prior to repeal, subsec. (b-8)(2)(A), read as follows: “(A) $1.85 for each $100 of assessed value for Class 2 Property; and”.
D.C. Law 17-216 added subsec. (b-10).
D.C. Law 17-219 rewrote subsec. (b-9).
D.C. Law 19-21, in subsec. (b-9)(2)(A)(i), substituted “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” for “subparagraph (B) of this paragraph; and”.
The 2015 amendment by D.C. Law 20-155 deleted “as certified in the latest revenue estimate” following “taxes estimated to be collected” in (b-8)(1)(A)(iv)(I); rewrote (b-8)(1)(A)(iv)(II); repealed (b-8)(2); rewrote (b-9)(1)(A) and (b-9)(2)(A)(i); substituted “estimated to be received” for “received” in (b-9)(2)(B)(ii)(I); substituted “in the tax year based upon the applicable rates in effect for Class 2 Properties during the prior tax year” for “for Class 2 Properties based upon a rate of $ 1.85 of each $ 100 of assessed value” in in (b-9)(2)(B)(ii)(II); substituted “By January 5 of each tax year” for “Before September 16 of each year” in in (b-9)(2)(B)(iii); and added (f).
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.
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.
For temporary (90 days) amendment of this section, see § 2(a) of Internet Sales Tax Emergency Amendment Act of 2018 (D.C. Act 22-556, Dec. 31, 2018, 66 DCR 262).
For temporary (90 days) amendment of this section, see § 6004(a)(1) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).
For temporary (90 days) amendment of this section, see § 6004(a)(1) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).
For temporary (90 day) amendment of section, see § 102(a) of Tax Parity Rates and Unincorporated Business Franchise Tax Rate Clarification Emergency Act of 2002 (D.C. Act 14-309, March 25, 2002, 49 DCR 3416).
For temporary (90 day) amendment of section, see §§ 1303(a) and 1304 of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).
For temporary (90 day) amendment of section, see §§ 1303(a) and 1304 of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).
For temporary (90 day) amendment of section, see §§ 1303(a) and 1304 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).
For temporary (90 day) amendment of section, see §§ 1262(a), 1263, 1264, 1272 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2043(a) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
For temporary (90 days) amendment of this section, see § 7092 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).
For temporary (90 days) amendment of this section, see § 7082 of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).
For temporary (90 days) amendment of this section, see § 7082 of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).
For temporary (225 day) amendment of section, see 102(a) of Tax Parity Rates and Unincorporated Business Franchise Tax Rate Clarification Temporary Act of 2002 (D.C. Law 14-163, June 25, 2002, law notification 49 DCR 6499).
Short title of subtitle EE of title I of Law 16-33: Section 1261 of D.C. Law 16-33 provided that subtitle EE of title I of the act may be cited as the Residential Property Tax Rate and Cap Reduction Act of 2005.
Short title of subtitle FF of title I of Law 16-33: Section 1271 of D.C. Law 16-33 provided that subtitle FF of title I of the act may be cited as the Calculated Residential Property Tax Rate Establishment Act of 2005.
Short title: Section 7003 of D.C. Law 17-219 provided that subtitle C of title VII of the act may be cited as the “Commercial Real Property Tax Relief Act of 2008”.
Short title: Section 8101 of D.C. Law 19-21 provided that subtitle K of title VIII of the act may be cited as “Determination of Calculated Rate for Fiscal Year 2012 Act of 2011”.
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.
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.
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.
“Sec. 1263. Applicability; conditional effect.
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.
Delegation of authority pursuant to Law 6-51, see Mayor’s Order 86-6, January 14, 1986.
Delegation of authority pursuant to Laws 6-195 and 6-203, see Mayor’s Order 86-172, September 30, 1986.

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