Source: https://code.dccouncil.us/dc/council/code/sections/42-1103.html
Timestamp: 2020-08-13 03:18:28
Document Index: 505777108

Matched Legal Cases: ['§ 47', '§ 47', '§ 47', '§ 47', '§ 42', '§ 303', '§ 203', '§ 304', '§ 101', '§ 8', '§ 2', '§ 101', '§ 101', '§ 59', '§ 506', '§ 9', '§ 9', '§ 1102', '§ 1232', '§ 61', '§ 161', '§ 161', '§ 1132', '§ 12', '§ 2003', '§ 135', '§ 7091', '§ 7102', '§ 7031', '§ 2', '§ 7142', '§ 107', '§ 7092', '§ 7022', '§ 7022', '§ 7022']

(a)(1) At the time a deed, including a lease or ground rent for a term (with renewals) that is at least 30 years, is submitted for recordation, it shall be taxed at the rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsections (a-4) and (a-5) of this section), as follows:
(A) A deed that conveys title to real property in the District shall be taxed at a rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsections (a-4) and (a-5) of this section) applied to the consideration for the deed; provided, that if there is no consideration for a transfer or if the consideration for the transfer is nominal, the rate shall be applied to the fair market value of the real property, as determined by the Mayor.
(2) Notwithstanding paragraph (1) of this subsection, at the time it is submitted for recordation, a deed that evidences a transfer of an economic interest in real property shall be taxed at the rate of 2.9% of the consideration allocable to the real property; provided, that, beginning October 1, 2009, in the case of a transfer of an economic interest in a cooperative housing association that is in connection with a grant, transfer, or assignment of a proprietary leasehold or other proprietary interest where the consideration allocable to the real property is less than $400,000, the rate of tax shall be 2.2%; provided further, that, beginning October 1, 2019, at the time it is submitted for recordation, a deed that evidences a transfer of an economic interest in real property any part of which is classified as Class 2 Property under § 47-813 (except for a deed solely transferring an economic interest relating to a residential unit within a cooperative housing association), shall be taxed at the rate of 5.0% of the consideration allocable to the real property if the value of the consideration allocable to the real property is $2 million or more; provided further, that for the purposes of the foregoing provision, a deed shall be considered to evidence a transfer of an economic interest in Class 2 Property if any portion of the building or structure in which the 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 the execution of the deed, the majority ownership of the economic interest 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).
(3)(A) Notwithstanding paragraph (1) of this subsection, at the time a security interest instrument is submitted for recordation, it shall be taxed at a rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsections (a-4) and (a-5) of this section) of the total amount of debt incurred that is secured by the interest in real property; provided, that if the existing debt is refinanced, the rate shall be applied only to the principal amount of the new debt in excess of the principal balance due on the existing debt to the extent that such existing debt (including any prior debt that was previously refinanced by the existing debt) was:
(a-4) Beginning October 1, 2006, except for residential properties transferred by deed of title 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) of this section.
(a-5)(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:
(A) Deed that is subject to the tax under subsection (a)(1) of this section if:
(i) 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
(ii) The taxed or imputed consideration for the deed is $2 million or more.
(B)(i) Security interest instrument that is subject to the tax under subsection (a)(3) of this section if the security interest instrument:
(I) Encumbers real property any part of which is classified as Class 2 Property under § 47-813; and
(II) Secures a debt of $2,000,000 or greater and only to the extent any part thereof exceeds an exemption from taxation under this chapter.
(ii) For the purposes of this subparagraph, debts in security interest instruments recorded on the same day and pertaining to the same real property shall be aggregated to determine whether the $2,000,000 threshold has been met; in the case in which such threshold is met, the tax under this subsection shall apply to each such security interest instrument regardless of the amount of debt secured by such security interest instrument.
(2) For the purposes of this subsection, a deed shall be considered to transfer Class 2 Property and a security interest instrument shall be considered to encumber 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 or encumbered by the security interest instrument is classified as Class 2 Property, regardless of whether that portion is transferred in the deed or encumbered by the security interest instrument, if, prior to execution of the deed or security interest instrument, the majority ownership of the real property (or interest in real property) being transferred by the deed or encumbered by the security interest instrument 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 such deed.
(e)(1) Beginning October 1, 2017, for eligible property purchased by a first-time District homebuyer, the rate of tax provided in subsections (a), (a-4), and (a-5) of this section shall be reduced as follows; provided, that the requirements of paragraph (2) of this subsection are met; provided further, that the entire benefit of the reduced recordation tax rate shall be allocated to the grantees of the eligible property, as shown on the settlement statement or closing disclosure form:
(h) Of the funds collected under this section, 15% shall be deposited in the Housing Production Trust Fund established by § 42-2802 and the remainder shall be deposited in the General Fund of the District of Columbia.
(Mar. 2, 1962, 76 Stat. 12, Pub. L. 87-408, title III, § 303; Oct. 21, 1975, D.C. Law 1-23, title II,§ 203, 22 DCR 2097; July 13, 1978, D.C. Law 2-91, § 304, 24 DCR 9765; Sept. 13, 1980, D.C. Law 3-92, § 101(c), 27 DCR 3390; July 25, 1989, D.C. Law 8-17, § 8(a), 36 DCR 4160; Sept. 9, 1989, D.C. Law 8-20, § 2(c), 36 DCR 4564; June 14, 1994, D.C. Law 10-128, § 101(e), 41 DCR 2096; April 9, 1997, D.C. Law 11-198, title I, § 101, 43 DCR 4569; April 9, 1997, D.C. Law 11-255, § 59, 44 DCR 1271; June 9, 2001, D.C. Law 13-305, § 506(c), 48 DCR 334; Oct. 26, 2001, D.C. Law 14-42, § 9, 48 DCR 7612; Apr. 4, 2003, D.C. Law 14-282, § 9(b), 50 DCR 896; June 5, 2003, D.C. Law 14-307, § 1102, 49 DCR 11664; Dec. 7, 2004, D.C. Law 15-205,§ 1232, 51 DCR 8441; Apr. 13, 2005, D.C. Law 15-354, §§ 61, 94, 52 DCR 2638; D.C. Law 16-123, § 161(a), 53 DCR 2843; June 8, 2006, D.C. Law 16-123, § 161(a), 53 DCR 2843; Mar. 2, 2007, D.C. Law 16-192,§§ 1132(b), 2053, 53 DCR 6899; Mar. 14, 2007, D.C. Law 16-294,§ 12, 54 DCR 1086; Aug. 16, 2008, D.C. Law 17-219, §§ 2003(a), 7110, 55 DCR 7598; Mar. 25, 2009, D.C. Law 17-353, §§ 135, 170(b), 56 DCR 1117; Mar. 3, 2010, D.C. Law 18-111, § 7091(b), 57 DCR 181; Sept. 20, 2012, D.C. Law 19-168, §§ 7102(c), 7122, 59 DCR 8025; Oct. 22, 2015, D.C. Law 21-36, § 7031, 60 DCR 10905; Apr. 7, 2017, D.C. Law 21-268, § 2(b), 64 DCR 2159; Dec. 13, 2017, D.C. Law 22-33, § 7142(b), 64 DCR 7652; July 3, 2018, D.C. Law 22-124, § 107(b), 65 DCR 5091; Oct. 30, 2018, D.C. Law 22-168, § 7092(b), 65 DCR 9388; Sept. 11, 2019, D.C. Law 23-16, § 7022, 66 DCR 8621.)
Section 7024 of D.C. Law 23-16 provided that the changes to this section made by section 7022 of D.C. Law 23-16 shall expire on September 30, 2023.
For temporary (90 days) amendment of this section, see § 7022 of Fiscal Year 2020 Budget Support Congressional Review Emergency Act of 2019 (D.C. Act 23-112, Sept. 4, 2019, 66 DCR 11964).
For temporary (90 days) amendment of this section, see § 7022 of Fiscal Year 2020 Budget Support Emergency Act of 2019 (D.C. Act 23-91, July 22, 2019, 66 DCR 8497).