2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 8 - Real Property Assessment and Tax › Subchapter II - Authority and Procedure to Establish Real Property Tax Rates › § 47–860.03. Tax abatements for housing in downtown – Abatement period and caps

§ 47–860.03. Tax abatements for housing in downtown – Abatement period and caps.
(a) For each property for which a certification of tax abatement was issued under § 47-860.02(e), the real property tax imposed by § 47-811 shall be abated in an annual amount, as determined by the Mayor, per residential FAR square foot of real property multiplied by the building's total residential FAR square footage as certified by the project architect and the Mayor; provided, that:
(1) The tax abatement shall begin in the tax year in which a certificate of occupancy is issued for the property and shall expire at the end of the 20th tax year after the tax year in which a certificate of occupancy is issued for the property; and
(2)(A) A property shall cease to receive the abatement if during the period of the tax abatement the Mayor determines that the property is no longer eligible for the abatement. If the Mayor makes such a determination, the Mayor shall transmit to the property owner and the Office of Tax and Revenue a letter of termination, setting forth the reason for the termination and the date on which the termination took, or shall take, effect. A property shall no longer be eligible for the tax abatement if it no longer contains 10 housing units, is in noncompliance with § 47-860.02(a)(1) or (2), is in noncompliance with any conditions set forth in the certification of tax abatement, or for any reason set forth by the Mayor by rule.
(B) If the Mayor determines that a property is no longer eligible for the abatement, the Mayor may, in his or her sole discretion, provide the property owner a period to cure the property's ineligibility and, if during the period to cure, the owner cures the property's ineligibility, the Mayor may, subject to subsection (b) of this section, restore the tax abatement; provided, that the tax abatement shall not be provided for the period during which the property was ineligible, and the period of cure shall not toll the 20-year period set forth in paragraph (1) of this subsection.
(C) If the Mayor restores a tax abatement under this subsection, the Mayor shall transmit a letter of restoration to the property owner and the Office of Tax and Revenue, setting forth the date on which the restoration took, or shall take, effect.
(b) The amount of tax abatements the Mayor may approve or certify under § 47-860.02 and restore under subsection (a)(2) of this section shall be capped at the following amounts, subject to the availability of funding:
(1) For Fiscal Years 2024, 2025, and 2026, up to $2.5 million;
(2) For Fiscal Year 2027, up to $6.8 million;
(3) [Repealed].
(4) For Fiscal Year 2028, up to $41 million; and
(5) For each succeeding fiscal year after Fiscal Year 2028, up to an amount equal to 104% of the prior year's cap.
(Sept. 21, 2022, D.C. Law 24-167, § 7082(b), 69 DCR 009223; Sept. 6, 2023, D.C. Law 25-50, § 2062(d), 70 DCR 10366.)
Emergency Legislation
For temporary (90 days) creation of this section, see § 47-860.03 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).