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C ouncilmember Kenyan R. McDuffie 2
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A PROPOSED RESOLUTION 9
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12
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To declare the existence of an emergency with respect to the need to provide equitable 15
real property tax relief to certain property owned by Grace Covenant Church 16
located on Lot 0800, Square 4138. 17
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RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 20
resolution may be cited as the “ Grace Covenant Church Equitable Real Property Tax Relief 21
Emergency Declaration Resolution of 2023”. 22
Sec. 2. (a) Grace Covenant Church is a nondenominational church that was established in 23
Ward 5 in the Brookland neighborhood in 1999 (“Church”) . The congregation of the Church 24
assembled and worshipped in rented properties until the Church purchased its current property 25
on Lot 0800 in Square 4138 from Capital Temple Church of God in Christ in October 2019. The 26
goal of this purchase was to have a permanent home and to renovate and expand the space to 27
better accommodate the congregation, allow for community engagement, and create spaces for 28
children. 29
(b) The transfer of ownership terminated the real property tax exemption that had been 30
granted to the previous owner. The Church mistakenly thought that the tax exemption had 31 2
transferred through the sale as similar operations were continuing as the property changed hands 1
between the two churches. 2
(c) After receiving a tax bill, the Church filed an Application for Exemption from D.C. 3
Real Property Tax form in December 2021. The application was approved by the Office of Tax 4
and Revenue (“OTR”) and the exemption went into effect on January 1, 2022. Because the 5
Church was not eligible for an exemption until the application was filed, OTR could not grant an 6
exemption for prior periods. As a result, there currently remains an unpaid tax liability on the 7
Church property from tax year 2020 through a portion of tax year 2022. 8
(d) On April 28, 2023, Councilmember McDuffie introduced a permanent version of this 9
legislation and on June 28, 2023, the Committee on Business and Economic Development held a 10
hearing on the permanent version (Bill 25 -281). The hearing included questioning by Chairman 11
McDuffie to both the witness from the Church and a representative from the Office of the Chief 12
Financial Officer. At this hearing the Office of the Chief Financial Officer supported the 13
legislation. 14
(e) There is a need to pass this legislation via emergency because on October 1, 2023, the 15
Church will accrue more interest and fines on the unpaid tax liability. T o ensure that the amount 16
budgeted by the District for this legislation is used in the current fiscal year, the legislation will 17
need to be enacted before October 1. 18
Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute 19
emergency circumstances making it necessary that the Grace Church Equitable Real Property 20
Tax Relief Emergency Act of 2023 be adopted after a single reading. 21
Sec. 4. This resolution shall take effect immediately. 22