ENROLLED ORIGINAL
1
AN ACT
___________
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
___________
To amend, on an emergency basis, section 47- 813 of the District of C olumbia Official Code to
provide for more timely classification changes for commercial properties that are to be
put to residential use, to provide for an application process to make classification
changes, to provide for appeal rights if such application is denied, and to provide for a
claw back in the event the real property is not timely put to residential use.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “Residential Building Permit Classification Emergency Amendment Act
of 2025”.
Sec. 2. Section 47- 813 of the District of Columbia Official Code is amended to read as
follows:
(a) Subsection (c-9)(2) is amended as follows:
(1) Subparagraph (A) is amended to read as follows:
“(2)(A) Except as otherwise provided in this paragraph and subject to
paragraphs (4) and (5) of this subsection, Class 1A Property shall be comprised of:
“(i) Residential real property that is improved and its legal use is
for nontransient residential dwelling purposes, and that is not Class 1B Property; provided, that
such property may be used to host transient guests pursuant to an unexpired short-term rental
license endorsement issued pursuant to § 30- 201.04; or
“(ii) Real property or a portion of real property for which a
building permit has been issued:
“(I) To construct a new improvement for predominantly
nontransient residential dwelling purpose; or
“(II) To substantially rehabilitate that portion or all of an
existing improvement for exclusively nontransient residential dwelling purposes.”.
(2) Subparagraph (C) is amended by striking the phrase “designated as” and
inserting the phrase “designated solely as” in its place. ENROLLED ORIGINAL
2
(b) The lead-in language of subsection (d- 2) is amended by striking the phrase “Class 3
Property or Class 4 Property,” and inserting the phrase “Class 2 Property, Class 3 Property, or
Class 4 Property,” in its place.
(c) A new subsection (d-3) is added to read as follows:
“(d-3)(1) If real property changes classification to Class 1A Property as defined in
subsection (c -9)(2)(A)(ii) during the period:
“(A) October 1 through March 31 of the tax year, the newly reclassified
Class 1A Property, or the portion thereof used exclusively for residential purposes if already
improved or assessed under § 47- 829, shall be taxed at the Class 1A Property tax rate for the
entire tax year; or
“(B) April 1 through September 30 of the tax year, the newly reclassified
Class 1A Property, or the portion thereof used exclusively for residential purposes if already
improved or assessed under § 47- 829, shall be taxed at the Class 1A Property tax rate for the
second installment only.
“(2) The owner shall apply for a change of classification to Class 1A Property as
defined in subsection (c -9)(2)(A)(ii) of this section and shall promptly provide complete
documentation in a manner prescribed by the Chief Financial Officer to substantiate any such
classification change before it shall be effective.
“(3) A change in classification to Class 1A Property as defined in subsection (c -
9)(2)(A)(ii) of this section shall be effective beginning in the half tax year for which application
is made under paragraph (2) of this subsection.
“(4) If change in classification to Class 1A Property as defined in subsection (c-
9)(2)(A)(ii) of this section is determined to be erroneous because the real property was not put to
predominantly residential use by the earlier of either the issuance of any new or amended
certificate of occupancy (temporary or permanent) for any part of the improvement thereon, or 3
years from issuance of the building permit, or the building permit expired and was not renewed
within one year, the Chief Financial Officer shall reclassify and tax the real property without
limitation for each tax year or half tax year in which the real property was improperly classified
as Class 1A Property, subject only to subsection (d- 1)(5)(A-i) of this section , if the property is
determined to be Class 3 Property or Class 4 Property, or subsection (d- 2) of this section. In the
event of such reclassification, penalty and interest shall be added beginning from the day the
correct amount of tax should have been due but not paid if the property had been properly
classified.
“(5) Within 45 days from the date of the notice of denial of Class 1A Property
reclassification under this subsection, the owner may petition for an administrative review of the
rescission or denial and appeal from a final determination thereof to the same extent as if the
appeal were filed under § 47-825.01a(d)(2).
“(6) Notwithstanding the time limitations in paragraphs (4) and (5) of this
subsection, the Chief Financial Officer, in his or her discretion, may grant an extension of time to ENROLLED ORIGINAL
3
comply or waive penalty and interest assessed pursuant to paragraph (4) of this subsection to
prevent an undue hardship to the owner.
“(7) The provisions of this subsection, subsection (c -9)(2)(A)(ii) of this section,
and § 47- 829 shall not supersede the requirement to timely file for mixed- use classification for
the upcoming tax year pursuant to subsection (f) of this section, whe n the annual assessment for
such upcoming tax year is made under § 47-824 and the certificate of occupancy (final or
temporary) was issued.”.
Sec. 3. Applicability.
This act shall apply as of April 1, 2025.
Sec. 4. Fiscal impact statement.
The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
statement required by section 4a of the General Legislative Procedures Act of 1975, approved
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a).
Sec. 5. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the
Mayor, action by the Council to override the veto), and shall remain in effect for no longer than
90 days, as provided for emergency acts of the Council of the District of Columbia in section
412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788;
D.C. Official Code § 1-204.12(a)).
___________________________________
Chairman
Council of the District of Columbia
_________________________________
Mayor
District of Columbia