District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0149 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ENROLLED ORIGINAL
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	4	+	Chairman Phil Mendelson 2
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	10	+	A BILL 8
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	14	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12
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	18	+	To amend, on an emergency basis, Title 47 of the DC Official Code to provide for more timely 16
	19	+	classification changes for commercial properties that are to be put to residential use; to 17
	20	+	provide for an application process to make classification changes; to provide for appeal 18
	21	+	rights if such application is denied; and to provide for a claw back in the event the real 19
	22	+	property is not timely put to residential use. 20
	23	+	21
	24	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 22
	25	+	act may be cited as the “Residential Building Permit Classification Emergency Amendment Act 23
	26	+	of 2025”. 24
	27	+	Sec. 2. Section 47-813 of the District of Columbia Official Code is amended to read as 25
	28	+	follows: 26
	29	+	(a) Subsection (c-9)(2) is amended as follows: 27
	30	+	(1) Subparagraph (A) is amended to read as follows: 28
	31	+	“(A) Except as otherwise provided in this paragraph and subject to 29
	32	+	paragraphs (4) and (5) of this subsection, Class 1A Property shall be comprised of: 30
	33	+	“(i) Residential real property that is improved and its legal use is 31
	34	+	for nontransient residential dwelling purposes, and that is not Class 1B Property; provided, that 32 2
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7		-	AN ACT
	36	+	such property may be used to host transient guests pursuant to an unexpired short-term rental 33
	37	+	license endorsement issued pursuant to § 30-201.04; or 34
	38	+	“(ii) Real property or a portion of real property for which a 35
	39	+	building permit has been issued: 36
	40	+	“(I) To construct a new improvement for predominantly 37
	41	+	nontransient residential dwelling purpose; or 38
	42	+	“(II) To substantially rehabilitate that portion or all of an 39
	43	+	existing improvement for exclusively nontransient residential dwelling purposes.”. 40
	44	+	(2) Subparagraph (C) is amended by striking the phrase “designated as” and 41
	45	+	inserting the phrase “designated solely as” in its place. 42
	46	+	(b) The lead-in language of subsection (d-2) is amended by striking the phrase “Class 3 43
	47	+	Property or Class 4 Property,” and inserting the phrase “Class 2 Property, Class 3 Property, or 44
	48	+	Class 4 Property,” in its place. 45
	49	+	(c) A new subsection (d-3) is added to read as follows: 46
	50	+	“(d-3)(1) If real property changes classification to Class 1A Property as defined in 47
	51	+	subsection (c-9)(2)(A)(ii) during the period: 48
	52	+	“(A) October 1 through March 31 of the tax year, the newly reclassified 49
	53	+	Class 1A Property, or the portion thereof used exclusively for residential purposes if already 50
	54	+	improved or assessed under § 47-829, shall be taxed at the Class 1A Property tax rate for the 51
	55	+	entire tax year; or 52
	56	+	“(B) April 1 through September 30 of the tax year, the newly reclassified 53
	57	+	Class 1A Property, or the portion thereof used exclusively for residential purposes if already 54 3
8	58
9		-	___________
	59	+	improved or assessed under § 47-829, shall be taxed at the Class 1A Property tax rate for the 55
	60	+	second installment only. 56
	61	+	“(2) The owner shall apply for a change of classification to Class 1A Property as 57
	62	+	defined in subsection (c-9)(2)(A)(ii) of this section and shall promptly provide complete 58
	63	+	documentation in a manner prescribed by the Chief Financial Officer to substantiate any such 59
	64	+	classification change before it shall be effective. 60
	65	+	“(3) A change in classification to Class 1A Property as defined in subsection (c-61
	66	+	9)(2)(A)(ii) of this section shall be effective beginning in the half tax year for which application 62
	67	+	is made under paragraph (2) of this subsection. 63
	68	+	“(4) If change in classification to Class 1A Property as defined in subsection (c-64
	69	+	9)(2)(A)(ii) of this section is determined to be erroneous because the real property was not put to 65
	70	+	predominantly residential use by the earlier of either the issuance of any new or amended 66
	71	+	certificate of occupancy (temporary or permanent) for any part of the improvement thereon, or 3 67
	72	+	years from issuance of the building permit, or the building permit expired and was not renewed 68
	73	+	within 1 year, the Chief Financial Officer shall reclassify and tax the real property without 69
	74	+	limitation for each tax year or half tax year in which the real property was improperly classified 70
	75	+	as Class 1A Property, subject only to subsection (d-1)(5)(A-i) of this section if the property is 71
	76	+	determined to be Class 3 Property or Class 4 Property, or subsection (d-2) of this section. In the 72
	77	+	event of such reclassification, penalty and interest shall be added beginning from the day the 73
	78	+	correct amount of tax should have been due but not paid if the property had been properly 74
	79	+	classified. 75
	80	+	“(5) Within 45 days from the date of the notice of denial of Class 1A Property 76
	81	+	reclassification under this paragraph of this subsection, the owner may petition for an 77 4
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11		-
12		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13		-
14		-	___________
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16		-
17		-	To amend, on an emergency basis, section 47- 813 of the District of C olumbia Official Code to
18		-	provide for more timely classification changes for commercial properties that are to be
19		-	put to residential use, to provide for an application process to make classification
20		-	changes, to provide for appeal rights if such application is denied, and to provide for a
21		-	claw back in the event the real property is not timely put to residential use.
22		-
23		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
24		-	act may be cited as the “Residential Building Permit Classification Emergency Amendment Act
25		-	of 2025”.
26		-
27		-	Sec. 2. Section 47- 813 of the District of Columbia Official Code is amended to read as
28		-	follows:
29		-	(a) Subsection (c-9)(2) is amended as follows:
30		-	(1) Subparagraph (A) is amended to read as follows:
31		-	“(2)(A) Except as otherwise provided in this paragraph and subject to
32		-	paragraphs (4) and (5) of this subsection, Class 1A Property shall be comprised of:
33		-	“(i) Residential real property that is improved and its legal use is
34		-	for nontransient residential dwelling purposes, and that is not Class 1B Property; provided, that
35		-	such property may be used to host transient guests pursuant to an unexpired short-term rental
36		-	license endorsement issued pursuant to § 30- 201.04; or
37		-	“(ii) Real property or a portion of real property for which a
38		-	building permit has been issued:
39		-	“(I) To construct a new improvement for predominantly
40		-	nontransient residential dwelling purpose; or
41		-	“(II) To substantially rehabilitate that portion or all of an
42		-	existing improvement for exclusively nontransient residential dwelling purposes.”.
43		-	(2) Subparagraph (C) is amended by striking the phrase “designated as” and
44		-	inserting the phrase “designated solely as” in its place. ENROLLED ORIGINAL
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49		-
50		-	(b) The lead-in language of subsection (d- 2) is amended by striking the phrase “Class 3
51		-	Property or Class 4 Property,” and inserting the phrase “Class 2 Property, Class 3 Property, or
52		-	Class 4 Property,” in its place.
53		-	(c) A new subsection (d-3) is added to read as follows:
54		-	“(d-3)(1) If real property changes classification to Class 1A Property as defined in
55		-	subsection (c -9)(2)(A)(ii) during the period:
56		-	“(A) October 1 through March 31 of the tax year, the newly reclassified
57		-	Class 1A Property, or the portion thereof used exclusively for residential purposes if already
58		-	improved or assessed under § 47- 829, shall be taxed at the Class 1A Property tax rate for the
59		-	entire tax year; or
60		-	“(B) April 1 through September 30 of the tax year, the newly reclassified
61		-	Class 1A Property, or the portion thereof used exclusively for residential purposes if already
62		-	improved or assessed under § 47- 829, shall be taxed at the Class 1A Property tax rate for the
63		-	second installment only.
64		-	“(2) The owner shall apply for a change of classification to Class 1A Property as
65		-	defined in subsection (c -9)(2)(A)(ii) of this section and shall promptly provide complete
66		-	documentation in a manner prescribed by the Chief Financial Officer to substantiate any such
67		-	classification change before it shall be effective.
68		-	“(3) A change in classification to Class 1A Property as defined in subsection (c -
69		-	9)(2)(A)(ii) of this section shall be effective beginning in the half tax year for which application
70		-	is made under paragraph (2) of this subsection.
71		-	“(4) If change in classification to Class 1A Property as defined in subsection (c-
72		-	9)(2)(A)(ii) of this section is determined to be erroneous because the real property was not put to
73		-	predominantly residential use by the earlier of either the issuance of any new or amended
74		-	certificate of occupancy (temporary or permanent) for any part of the improvement thereon, or 3
75		-	years from issuance of the building permit, or the building permit expired and was not renewed
76		-	within one year, the Chief Financial Officer shall reclassify and tax the real property without
77		-	limitation for each tax year or half tax year in which the real property was improperly classified
78		-	as Class 1A Property, subject only to subsection (d- 1)(5)(A-i) of this section , if the property is
79		-	determined to be Class 3 Property or Class 4 Property, or subsection (d- 2) of this section. In the
80		-	event of such reclassification, penalty and interest shall be added beginning from the day the
81		-	correct amount of tax should have been due but not paid if the property had been properly
82		-	classified.
83		-	“(5) Within 45 days from the date of the notice of denial of Class 1A Property
84		-	reclassification under this subsection, the owner may petition for an administrative review of the
85		-	rescission or denial and appeal from a final determination thereof to the same extent as if the
86		-	appeal were filed under § 47-825.01a(d)(2).
87		-	“(6) Notwithstanding the time limitations in paragraphs (4) and (5) of this
88		-	subsection, the Chief Financial Officer, in his or her discretion, may grant an extension of time to ENROLLED ORIGINAL
89		-
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94		-	comply or waive penalty and interest assessed pursuant to paragraph (4) of this subsection to
95		-	prevent an undue hardship to the owner.
96		-	“(7) The provisions of this subsection, subsection (c -9)(2)(A)(ii) of this section,
97		-	and § 47- 829 shall not supersede the requirement to timely file for mixed- use classification for
98		-	the upcoming tax year pursuant to subsection (f) of this section, whe n the annual assessment for
99		-	such upcoming tax year is made under § 47-824 and the certificate of occupancy (final or
100		-	temporary) was issued.”.
101		-
102		-	Sec. 3. Applicability.
103		-	This act shall apply as of April 1, 2025.
104		-
105		-	Sec. 4. Fiscal impact statement.
106		-	The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
107		-	statement required by section 4a of the General Legislative Procedures Act of 1975, approved
108		-	October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a).
109		-
110		-	Sec. 5. Effective date.
111		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
112		-	Mayor, action by the Council to override the veto), and shall remain in effect for no longer than
113		-	90 days, as provided for emergency acts of the Council of the District of Columbia in section
114		-	412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788;
115		-	D.C. Official Code § 1-204.12(a)).
116		-
117		-
118		-
119		-
120		-	___________________________________
121		-	Chairman
122		-	Council of the District of Columbia
123		-
124		-
125		-
126		-
127		-
128		-	_________________________________
129		-	Mayor
130		-	District of Columbia
131		-
132		-
133		-
	83	+	administrative review of the rescission or denial and appeal from a final determination thereof to 78
	84	+	the same extent as if the appeal were filed under § 47-825.01a(d)(2). 79
	85	+	“(6) Notwithstanding the time limitations in paragraphs (4) and (5) of this 80
	86	+	paragraph, the Chief Financial Officer, in his or her discretion, may grant an extension of time to 81
	87	+	comply or waive penalty and interest assessed pursuant to paragraph (4) of this subsection to 82
	88	+	prevent an undue hardship to the owner. 83
	89	+	“(7) The provisions of this subsection, subsection (c-9)(2)(A)(ii) of this section, 84
	90	+	and § 47-829 shall not supersede the requirement to timely file for mixed-use classification for 85
	91	+	the upcoming tax year pursuant to subsection (f) of this section, when the annual assessment for 86
	92	+	such upcoming tax year is made under § 47-824 and the certificate of occupancy (final or 87
	93	+	temporary) was issued.”. 88
	94	+	Sec. 3. Applicability. 89
	95	+	This act shall apply as of April 1, 2025. 90
	96	+	Sec. 4. Fiscal impact statement. 91
	97	+	The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 92
	98	+	statement required by section 4a of the General Legislative Procedures Act of 1975, approved 93
	99	+	October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 94
	100	+	Sec. 5. Effective date. 95
	101	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 96
	102	+	Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 97
	103	+	90 days, as provided for emergency acts of the Council of the District of Columbia in section 98
	104	+	412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; 99
	105	+	D.C. Official Code § 1-204.12(a)). 100