D.C. Mun. Regs. tit. 9, r. 9-322

Current through Register Vol. 71, No. 39, September 27, 2024

Rule 9-322 - EXEMPTION FROM REAL PROPERTY TAXATION

322.1

Real property shall meet the following conditions to be eligible for exemption from real property taxation under D.C. Official Code § 47-1002(4) through (19):

(a) Legal title to the real property for which the exemption is sought shall be recorded in the name of the organization or institution requesting exemption from real property taxation on or prior to the effective date of the exemption; provided that in the case of real property encumbered by a deed of the trust, the trustor and equitable owner, as evidenced by a recorded deed, shall be the organization or institution requesting exemption from real property taxation on or prior to the effective date of the exemption; and

(b) Concurrence of ownership and use of the real property shall be required of the owner seeking exemption from real property taxation, except in the following situations and subject to the applicable limitations of the relevant subsections of D.C. Official Code § 47-1002:

(1) Under D.C. Official Code § 47-1002(8) a charitable institution owns the real property and a charitable institution uses the real property; provided that if each institution both owned and used the real property, the real property would be eligible for exemption from real property taxation; or

(2) Under D.C. Official Code § 47-1002(10) a school, college or university owns the real property and a school, college or university uses the real property; provided that if each institution both owned and used the real property, the real property would be eligible for exemption from real property taxation.

(c) The phrase "not organized or operated for private gain" shall mean a corporation organized under the District of Columbia Nonprofit Corporation Act (D.C. Official Code § 29-301.01, et seq.), or such similar provision of a foreign jurisdiction.

(d) The phrase "public charity" shall mean any corporation:

(1) To which contributions are deductible under 26 U.S.C. § 170 and subject to a 50% contribution ceiling of a taxpayer's contribution base for a taxable year; and

(2) Which provides benevolent services to the public that otherwise would be provided by the District of Columbia or the United States of America; provided that in the case of housing, continuous support and rehabilitative services to transient tenants, or continuous support services and care for the disabled or terminally ill, are provided.

322.2

Public charter schools shall be exempt from real property taxation under D.C. Official Code §§ 38-1802.10(b) and 47 -1002(10).

322.3

The definition of the word "owner" in D.C. Official Code § 47-802(5) shall not apply to §§ 322 through 326, and shall not apply to the provisions of Chapter 10 of Title 47 of the D.C. Official Code.

322.4

Except as provided in § 322.5, each application for an exemption from real property taxation under this section shall be completed on the FP-300 form, and such form shall be filed with the Office of Tax and Revenue, Real Property Tax Administration, Standards a nd Exemption Unit, provided that, the form and attachments shall be filed electronically as prescribed by Section 370.

322.5

The following real properties are exempt from the requirement for a written application for exemption from real property taxation:

(a) Real property owned by the United States of America, or an instrumentality thereof;

(b) Real property owned by the District of Columbia, or an instrumentality thereof;

(c) Real property owned by a foreign government and used by that government for legation purposes (as certified by the United States Department of State);

(d) Real property specifically exempt by Act of Congress; and

(e) Real property specifically exempt by Act of Council.

322.6

(a) Real property eligible for exemption under D.C. Official Code § 47-1002 shall be exempt from real property tax as of the first month following the date on which a properly completed application has been filed.

(b) When real property exempt from real property tax becomes ineligible for the exemption, the exemption shall be terminated as of the first full month following the date the property becomes ineligible for the exemption.

322.7

Notwithstanding § 322.6, real property:

(a) Acquired by the United States of America, and exempt from real property taxation under D.C. Official Code § 47-1002, shall be exempt as of the date the deed is acknowledged;

(b) Sold by the United States of America shall be deemed taxable as of the date the deed is acknowledged;

(c) Acquired by a foreign state or international organization, and exempt or immune from real property taxation under D.C. Official Code § 47-1002 or by law of the United States of America, shall be exempt as of the date the deed is acknowledged; or

(d) Sold by a foreign state or international organization shall be deemed taxable as of the date the deed is acknowledged.

322.8

The following shall apply to an interest or use of real property that may be eligible for exemption from taxation under D.C. Official Code § 47-1005.01:

(a) An application for exemption from taxation of the interest or use of real property under D.C. Official Code § 47-1005.01 and this section shall be filed as provided in § 322.4 by the person with the interest or use;

(b) In order to qualify for an exemption from taxation, the person filing the application shall be in privity with the actual owner of the real property that is exempt or immune from real property taxation under D.C. Official Code § 47-1002(1) -(3) or the laws of the United States. For purposes of this subsection, an assignee of a lease shall be deemed to be in privity with the actual owner if the real property would be exempt under D.C. Official Code § 47-1002 if the assignor (in privity with the actual owner) were the owner and the assignee were the original lessee; and

(c) The person with the interest or use shall be deemed the owner for purposes of having standing to file the application for exemption; provided that in the application for exemption, the person with the interest or use shall (in addition to stating such person's name as the applicant) state the name of the actual owner and clearly designate same as such, e.g. United Charities, Inc., Lessee of the United States of America (Actual Owner).

322.9

In the case where land is exempt or immune from real property taxation under D.C. Code Official Code § 47 -1002(1) through (3) or the laws of the United States, and the improvement is not so exempt or immune, the applicant shall file a single application for exemption under § 322.4 setting forth why the applicant's interest or use of the land is exempt from taxation under D.C. Official Code § 47-1005.01 and why the improvement is exempt from real property taxation under D.C. Official Code § 47-1002. Where an alternate situation is present, substitute "land" for "improvement" and "improvement" for "land" in the foregoing sentence.

322.10

The following information shall be included in an application for exemption:

(a) The name of the owner-applicant;

(b) The Federal tax identification numbers of the owner-applicant and any lessee thereof;

(c) Location and square, suffix and lot number, parcel and lot number or reservation and lot number of the real property involved;

(d) The date on which the real property (or interest or use for purposes of § 322.8) was acquired;

(e) The current and proposed future use of the real property;

(f) A description of the activities of the applicant, and any lessee or equivalent thereof;

(g) A copy of the certificate of occupancy; provided that a copy of the application for a certificate of occupancy shall be sufficient so long that the application is updated by the applicant with a copy of the certificate of occupancy once the certificate of occupancy is issued;

(h) If an application for a certificate of occupancy cannot be made due to renovation or construction, the applicant shall expeditiously provide to the Deputy Chief Financial Officer copies of applications for building permits to be supplemented by the actual building permits as issued;

(i) The name, address, and telephone number of a person to be contacted for an inspection of the real property; and

(j) Other information that the Deputy Chief Financial Officer may require.

322.11

Real properties for which an application for an exemption has been filed shall be physically inspected to verify and evaluate data in the application and the results of the inspection shall be recorded in the application file.

322.12

Written notice of the decision on an application for exemption shall be mailed to the applicant and the decision shall cite the provision of law under which an exemption is granted and the effective date of the exemption (if approved), or the reason for denial of the exemption.

322.13

If a request for an exemption is denied, the procedure for appeal shall be included in the notice to the applicant for exemption.

D.C. Mun. Regs. tit. 9, r. 9-322

Regulation No. 74-35 effective December 12, 1974, 21 DCR 1643 (January 20, 1975), 16 DCRR §§133, 134; as amended by Final Rulemaking published at 32 DCR 1360 (March 8, 1985); as amended by Final Rulemaking published at 48 DCR 11705 (December 28, 2001); as amended by Final Rulemaking published at 49 DCR 4347 (May 10, 2002); amended by Final Rulemaking published at 67 DCR 11444 (10/2/2020)