2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 46 - Special Tax Incentives › § 47–4608. DC-USA development project — Tax exemptions

§ 47–4608. DC-USA development project — Tax exemptions.
(a) For the purposes of this section, the term:
(1) “DC-USA Project” means the acquisition, development, construction, installation, and equipping of the multi-use retail and parking garage project to be located in square 2674, lots 719, 720, 812, 832, 863, 866, 869, 870, 871, and 872 and the portions of the public alley system in square 2674 that reverted to lots 719, 720, 863, 870, and 872 pursuant to the Closing of Public Alleys on Square 2674, S.O. 01-2426, Act of 2004, effective March 17, 2005 (D.C. Law 15-254; 51 DCR 11429), and the Plat of Alley Closing filed with the Surveyor of the District of Columbia in Book 199, Page 88, including the successor record or assessment and taxation lots to be developed by the Developer, consisting of:
(A) Approximately 487,000 square feet of retail space, including approximately 180,000 square feet of retail space to be owned and operated as a department store by Target Corporation;
(B) An underground parking garage for approximately 1,000 automobiles; and
(C) Other ancillary improvements.
(2) “Developer” means DC USA Operating Co. LLC.
(3) “Development Sponsor” means the National Capital Revitalization Corporation, any subsidiary thereof, or assignee thereof.
(4) “Parking Garage Unit” means the underground parking garage for approximately 1,000 automobiles which will be one of 3 commercial condominium units comprising the DC-USA Project.
(b) The DC-USA Project shall be exempt from the tax imposed by §§ 42-1103 and 47-903.
(c)(1) The sales and rental of tangible personal property to be incorporated in or consumed in the course of the development, construction, equipping, and furnishing of the DC-USA Project, whether or not the sale, material, rental, or nature of the property is incorporated as a permanent part of the DC-USA Project, shall be exempt from the tax imposed by § 47-2002.
(2) The sales tax exemption granted by paragraph (1) of this subsection shall apply upon the conveyance of the real property to the Developer by the Development Sponsor.
(3) The sales tax exemption granted by paragraph (1) of this subsection shall terminate upon the issuance of a Certificate of Occupancy for the DC-USA Project.
(d)(1) The DC-USA Project shall be exempt from the tax imposed by Chapter 8 [of this title].
(2) The real property tax exemption granted by paragraph (1) of this subsection shall apply upon the conveyance of the real property to the Developer by the Development Sponsor.
(3) The real property exemption granted by paragraph (1) of this subsection shall terminate upon the conveyance of the Parking Garage Unit from the Developer to the Development Sponsor.
(e) The amount of taxes exempt pursuant to subsections (c) and (d) of this section shall not exceed, in the aggregate, $1,029,000.
(f) The amount of all taxes exempt pursuant to this section shall be in addition to any other tax relief or assistance from any other source applicable to the DC-USA Project.
(May 20, 2006, D.C. Law 16-105, § 2(b), 53 DCR 2051; Mar. 2, 2007, D.C. Law 16-191, § 9(a), 53 DCR 6794; Mar. 25, 2009, D.C. Law 17-353, § 112, 56 DCR 1117.)
Effect of Amendments
D.C. Law 16-191, in the section designation, validated a previously made technical correction.
D.C. Law 17-353 validated a previously made technical correction in the section designation.
Emergency Legislation
For temporary (90 day) addition, see § 2(b) of DC-USA Economic Development Emergency Act of 2005 (D.C. Act 16-247, December 22, 2005, 53 DCR 277).
For temporary (90 day) addition, see § 2(b) of DC-USA Economic Development Congressional Review Emergency Act of 2006 (D.C. Act 16-326, March 23, 2006, 53 DCR 2579).
For temporary (90 day) amendment of section, see § 4(a) of Finance and Revenue Technical Amendments Second Emergency Amendment Act of 2006 (D.C. Act 16-585, December 28, 2006, 54 DCR 340).
For temporary (90 day) addition, see § 3(b) of Eastern Market and Georgetown Public Library Disaster Relief Emergency Act of 2007 (D.C. Act 17-53, June 21, 2007, 54 DCR 6589).
For temporary (90 days) tax increment revenue bonds DC USA project extension, see § 7022-7024 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).
For temporary (90 days) tax increment revenue bonds DC USA project extension, see § 7022 and 7023 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).
Temporary Legislation
Section 2(b) of D.C. Law 16-77 added § 47-4607 to read as follows:
“47-4607. DC-USA development project-tax exemptions.
“(a) For the purposes of this section, the term:
“(1) ‘DC-USA Project’ means the acquisition, development, construction, installation, and equipping of the multi-use retail and parking garage project to be located in square 2674, lots 719, 720, 812, 832, 863, 866, 869, 870, 871, and 872 and the portions of the public alley system in square 2674 that reverted to lots 719, 720, 863, 870, and 872 pursuant to the Closing of Public Alleys on Square 2674, S.O. 01-2426, Act of 2004, effective March 17, 2005 (D.C. Law 15-254; 51 DCR 11429), and the Plat of Alley Closing filed with the Surveyor of the District in Book 199, Page 88, including the successor record or assessment and taxation lots to be developed by Developer, consisting of:
“(A) Approximately 487,000 square feet of retail space, including approximately 180,000 square feet of retail space to be owned and operated as a department store by Target Corporation;
“(B) An underground parking garage for approximately 1,000 automobiles; and
“(C) Other ancillary improvements.
“(2) ‘Developer’ means DC USA Operating Co. LLC.
“(3) ‘Development Sponsor’ means the National Capital Revitalization Corporation, any subsidiary thereof, or assignee thereof.
“(4) ‘Parking Garage Unit’ means the underground parking garage for approximately 1,000 automobiles which will be one of 3 commercial condominium units comprising the DC-USA Project.
“(b) The DC-USA Project shall be exempt from the tax imposed by §§ 42-1103 and 47-903.
“(c)(1) The sales and rental of tangible personal property to be incorporated in or consumed in the course of the development, construction, equipping, and furnishing of the DC-USA Project, whether or not the sale, material, rental, or nature of the property is incorporated as a permanent part of the DC-USA Project, shall be exempt from the tax imposed by § 47-2002.
“(2) The sales tax exemption granted by paragraph (1) of this subsection shall apply upon the conveyance of the real property to the Developer by the Development Sponsor.
“(3) The sales tax exemption granted by paragraph (1) of this subsection shall terminate upon the issuance of a Certificate of Occupancy for the DC-USA Project.
“(d)(1) The DC-USA Project shall be exempt from the tax imposed by Chapter 8.
“(2) The real property tax exemption granted by paragraph (1) of this subsection shall apply upon the conveyance of the real property to the Developer by the Development Sponsor.
“(3) The real property exemption granted by paragraph (1) of this subsection shall terminate upon the conveyance of the Parking Garage Unit from the Developer to the Development Sponsor.
“(e) The amount of taxes exempt pursuant to subsections (c) and (d) of this section shall not exceed, in the aggregate,
“(f) The amount of all taxes exempt pursuant to this section shall be in addition to any other tax relief or assistance from any other source applicable to the DC-USA Project, including exemptions and incentives provided in § 47-3802.”
Section 4(b) of D.C. Law 16-77 provides that the act shall expire after 225 days of its having taken effect.
Section 3(b) of D.C. Law 17-28 added § 47-4608 to read as follows:
“§ 47-4608. Exemption from remittance of business taxes and sales taxes for dislocated interior Eastern Market tenants.
“A dislocated interior market tenant doing business at Eastern Market shall be exempt from corporate and unincorporated business taxes and sales taxes imposed by, respectively, Chapters 18 and 20 of this title for the period of February 1, 2007 through April 30, 2007.”
Section 5(b) of D.C. Law 17-28 provides that the act shall expire after 225 days of its having taken effect.
Short Title
Section 7021 of D.C. Law 20-61 provided that Subtitle B of Title VII of the act may be cited as the “Tax Increment Revenue Bonds D Extension Act of 2013”.
Editor's Notes
Section 7022 of D.C. Law 20-61 provided:
“Definitions. For the purposes of this subtitle [Subtitle B of Title 7 of D.C. Law 20-61], the term:
“(1) ‘Available Real Property Tax Revenues’ means the revenues resulting from the imposition of the tax provided for in Chapter 8 of Title 47 of the District of Columbia Official Code and the tax imposed by D.C. Official Code § 47-1005.01, including any penalties and interest charges, exclusive of the special tax provided for in section 481 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 807; D.C. Official Code § 1-204.81), pledged to the payment of general obligation indebtedness of the District.
“(2) ‘Available Sales Tax Revenues’ means the revenues resulting from the imposition of the tax imposed pursuant to Chapter 20 of Title 47 of the District of Columbia Official Code, including any penalties and interest charges, exclusive of the portion thereof required to be deposited in the Washington Convention Center Fund established pursuant to section 208 of the Washington Convention Center Authority Act of 1994, effective September 28, 1994 (D.C. Law 10-188; D.C. Official Code § 10-1202.08).
“(3) ‘Available Tax Increment’ means the sum of the Available Sales Tax Revenues and Available Real Property Tax Revenues generated by the DC-USA Project TIF Area minus the sum of Available Sales Tax Revenues and Available Real Property Tax Revenues generated in the respective base year, as certified by the Chief Financial Officer.
“(4) ‘Bonds’ means the $46.9 million National Capital Revitalization Variable Rate Revenue Bonds (DC USA Parking Garage Project) Series 2006.
“(5) ‘Chief Financial Officer’ means the Chief Financial Officer of the District of Columbia.
“(6) ‘DC USA Project TIF Area’ means the following parcels and lots and squares: Square 2674, Lot 0866; Square 2674, Lot 0720; Square 2674, Lot 0863; Square 2674, Lot 0832; Square 2674, Lot 0812; Square 2674, Lot 0869; Square 2674, Lot 0719; Square 2674, Lot 0872; Square 2674, Lot 0870; Square 2674, Lot 0871.”
Section 7023 of D.C. Law 20-61 provided:
“Allocation of Available Tax Increment. There is allocated to the repayment of the Bonds 100% of the Available Tax Increment until such time as the Bonds are paid in full. The Available Real Property Tax Revenues shall be calculated based upon the assessed value of the real property comprising the DC-USA Project TIF Area as of January 1, 2004, for the base year of tax year 2005 as certified by the Chief Financial Officer. The Available Sales Tax Revenues shall be calculated based upon the sales tax revenue for base year 2003 as certified by the Chief Financial Officer.”