D.C. Code § 47-813

Current through codified legislation effective September 18, 2024

Section 47-813 - Classes of property

(a) For the purpose of levying taxes on real property in the District of Columbia, the Council may establish different classes of real property.

(b) For the property tax year beginning July 1, 1979, and ending June 30, 1980, the following classes of real property are established:

(1)Class 1 Property. -

(A) Class 1 Property shall be comprised of improved residential real property which:

(i) Is occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property; provided, that at least 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association;

(2)Class 2 Property. -

(A) Class 2 Property shall be comprised of improved residential real property, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property; provided, that less than 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association.

(C) Nothing in this subsection shall be construed to include hotels in the Class 2 Property classification;

(3)Class 3 Property. - Class 3 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property.

(c) For the property tax year beginning July 1, 1980, and ending June 30, 1981, and for each tax year thereafter, the following classes of real property are established:

(1)Class 1 Property. -

(A) Class 1 Property shall be comprised of improved residential real property which:

(i) Is occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(C) Vacant real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if said vacant property and the improved residential real property which it abuts have common ownership. For the property tax year beginning July 1, 1984, and ending June 30, 1985, and for each tax year thereafter, vacant real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 1 improved residential real property separated by the alley from the vacant lot;

(2)Class 2 Property. -

(A) Class 2 Property shall be comprised of improved residential real property, including apartment buildings, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(C) Improved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.

(D) Vacant real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if said vacant property and the improved residential real property which it abuts have common ownership. For the property tax year beginning July 1, 1984, and ending June 30, 1985, and for each tax year thereafter, vacant real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 2 improved residential real property separated by the alley from the vacant lot.

(E) The Mayor may require an owner of real property to submit such information relating to the ownership of vacant real property as in the Mayor's judgment will assist in the determination of ownership of such property as required under this section for purposes of real property classification;

(3)Class 3 Property. - Class 3 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property. Vacant real property which abuts and has common ownership with real property subject to the apportionment provision of subsection (f) of this section shall also be classified as Class 3 Property.

(c-1) For the property tax year beginning July 1, 1985, and ending June 30, 1986, and for each subsequent tax year, the following classes of real property not covered in subsection (c-2) or (c-3) of this section are established:

(1)Class 1 Property. -

(A) Class 1 Property shall be comprised of improved residential real property which:

(i) Is occupied by the owner of the property;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property, so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Vacant real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the vacant property and the improved residential real property which it abuts have common ownership.

(D) Vacant real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 1 improved residential real property separated by the alley from the vacant lot.

(2)Class 2 Property. -

(A) Class 2 Property shall be comprised of improved residential real property, including buildings, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property, so long as less than 50% the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Improved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.

(D) Vacant real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the vacant property and the improved residential real property which it abuts have common ownership.

(E) Vacant real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 2 improved residential real property separated by the alley from the vacant lot.

(F) The Mayor may require an owner of real property to submit such information relating to the ownership of vacant real property as in the Mayor's judgment will assist in the determination of ownership of the property as required under this section for purposes of real property classification.

(3)Class 3 Property. -

(A) Class 3 Property shall be comprised of improved commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings or accommodations to transients.

(B) For purposes of subparagraph (A) of this paragraph the term "transient" means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient, but shall be considered a permanent resident of the hotel, motel or inn.

(4)Class 4 Property. - Class 4 Property shall be comprised of all real property which is not Class 1 Property, Class 2 Property or Class 3 Property. Vacant real property which abuts and has common ownership with real property subject to the apportionment provision of subsection (f) in this section shall also be classified as Class 4 Property.

(c-2) For the property tax year beginning July 1, 1990, and ending June 30, 1991, and the subsequent tax years beginning July 1, 1991, and ending June 30, 1992, and beginning July 1, 1992, and ending June 30, 1993, and for the period beginning July 1, 1993, and ending September 30, 1993, and beginning October 1, 1993, and ending September 30, 1994, the following classes of real property are established:

(1)Class 1 Property. -

(A) Class 1 Property shall be comprised of improved residential real property which:

(i)

(I) Is occupied by the owner of the property; or

(II) Is unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied by the owner of the property at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(C) Unimproved real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the improved residential real property which it abuts have common ownership.

(D) Unimproved real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 improved residential real property separated by the alley from the unimproved real property.

(2)Class 2 Property. -

(A) Class 2 Property shall be comprised of improved residential real property, including buildings, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property, so long as less than 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Improved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.

(D) Unimproved real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the improved residential real property which it abuts have common ownership.

(E) Unimproved real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 2 improved residential real property separated by the alley from the unimproved real property.

(F) The Mayor may require an owner of real property to submit such information relating to the ownership of unimproved real property as in the Mayor's judgment will assist in the determination of ownership of the property as required under this section for purposes of real property classification.

(3)Class 3 Property. -

(B) For purposes of subparagraph (A) of this paragraph, the term "transient" means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient but shall be considered a permanent resident of the hotel, motel, or inn.

(4)Class 4 Property. - Class 4 Property shall be comprised of:

(A) All improved real property, which is not Class 1 Property, Class 2 Property, or Class 3 Property;

(B) Unimproved real property, which is not Class 1 Property, Class 2 Property, or Class 3 Property, if any of the following conditions are met:

(i) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;

(ii) A building permit has been issued and is in effect as of July 1, 1990; or

(iii) The unimproved real property is used as a parking lot and each approval required from the District of Columbia government for use as a parking lot has been obtained;

(C) For the property tax year beginning July 1, 1991, and ending June 30, 1992, any improved or unimproved real property classified as Class 4 Property as of June 30, 1991, unless the real property qualifies as Class 1, Class 2, or Class 3;

(D) For the property tax year beginning July 1, 1991, and ending June 30, 1992, any unimproved real property that was classified as improved real property as of June 30, 1991, unless the real property qualifies as Class 1, Class 2, or Class 3; and

(E) Class 4 Property shall include, as of June 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the District of Columbia Generalized Land Use Map dated November 1992 that is part of the Comprehensive Plan, provided that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, "the term predevelopment activities" means completion of 1 of the following:

(i) Preparation of subdivision or large tract review applications;

(ii) Preparation or application for District permits or authorizations to proceed with development;

(iii) Participation in special planning or transportation studies prepared in conjunction with the District; or

(iv) Completion of environmental assessment or mitigation studies prepared in conjunction with the District.

(5)Class 5 Property. -

(A) Class 5 Property shall be comprised of all unimproved real property which is not Class 1 Property, Class 2 Property, Class 3 Property, or Class 4 Property.

(B) Unimproved real property that abuts and has common ownership with real property subject to the apportionment provision of subsection (f) of this section and cannot be classified as Class 1 Property, Class 2 Property, Class 3 Property, or Class 4 Property shall also be classified as Class 5 Property.

(c-3) For the property tax year beginning October 1, 1994, and ending September 30, 1995, and for each subsequent tax year, the following classes of real property are established:

(1)Class 1 Property. -

(A) Class 1 Property shall be comprised of improved residential real property that:

(i)

(I) Is occupied by the owner of the property; or

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property that is owned by a cooperative housing association shall also be classified as Class 1 Property so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Class 1 Property that becomes unoccupied shall be classified as Class 2 Property if the property becomes unoccupied due to any of the following conditions:

(i) [Repealed];

(ii) The improved real property is actively for sale at a reasonable market price as of September 30 of the preceding tax year;

(iii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year; or

(iv) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation.

(D) Unimproved real property which abuts improved and occupied residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the improved and occupied residential real property which it abuts have common ownership.

(E) Unimproved real property which is separated from Class 1 improved and occupied residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 improved and occupied residential real property separated by the alley from the unimproved real property.

(2)Class 2 Property. -

(A) Class 2 Property shall be comprised of improved and occupied residential real property, including a building, that:

(i) Is occupied, but not by the owner;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property so long as less than 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Improved and occupied multifamily residential real property which contains more than 5 dwelling units and is used exclusively for nontransient purposes shall also be classified as Class 2 Property.

(D) Unimproved real property which abuts improved and occupied residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the improved and occupied residential real property which it abuts have common ownership.

(E) Unimproved real property which is separated from Class 2 improved and occupied residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 2 improved and occupied residential real property separated by the alley from the unimproved real property.

(F) Class 2 Property that becomes unoccupied shall be classified as Class 4 Property if it becomes unoccupied due to any of the following conditions:

(i) A major fire, flood, or other casualty to the improved real property, which was not intentionally caused by the owner, has occurred during the 12 months preceding the tax year;

(ii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year;

(iii) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation; or

(iv) An application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year, before the Board of Zoning Adjustment, the Zoning Commission, the Commission of Fine Arts, the Historic Preservation Review Board, or the National Capital Planning Commission.

(G) Improved real property described in paragraph (1)(C) of this subsection.

(3)Class 3 Property. -

(A) Class 3 Property shall be comprised of improved and occupied commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.

(B) For purposes of subparagraph (A) of this paragraph, the term "transient" means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient, but shall be considered a permanent resident of the hotel, motel, or inn.

(C) Class 3 Property that becomes unoccupied shall be classified as Class 4 Property if it becomes unoccupied due to any of the following conditions:

(i) A major fire, flood, or other casualty to the improved real property, which was not intentionally caused by the owner, has occurred during the 12 months preceding the tax year;

(ii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year;

(iii) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation; or

(4)Class 4 Property. - Class 4 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property or Class 3 Property.

(5) Repealed.

(c-4) For the real property tax year beginning October 1, 2001, and ending September 30, 2002, the following classes of real property are established:

(1)Class 1 Property. -

(A) Class 1 Property shall be comprised of improved residential real property that:

(i) Is occupied; and

(ii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property that is owned by a cooperative housing association shall also be classified as Class 1 Property.

(C) Improved and occupied multifamily residential real property which is used exclusively for nontransient dwelling purposes shall also be classified as Class 1 Property.

(D) Unimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the Class 1 Property have common ownership.

(E) Unimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 Property separated by the alley from the unimproved real property.

(F) Class 1 Property that becomes unoccupied shall remain classified as Class 1 Property if:

(i) Unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;

(ii) The improved real property is actively for sale at a reasonable market price as of September 30 of the preceding tax year;

(iii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year; or

(iv) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation.

(2)Class 2 Property. - Class 2 Property shall be comprised of all real property which is not Class 1 Property.

(c-5) Repealed.

(c-6)

(1) For tax years 2003 through 2006, the following classes of taxable real property are established:

(A) Class 1 Property;

(B) Class 2 Property; and

(C) Class 3 Property.

(2)

(A) Class 1 Property shall be comprised of residential real property that:

(i) Is improved;

(ii) Is occupied; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Unimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the Class 1 Property have common ownership.

(C) Residential real property that is either unoccupied or unimproved shall remain classified as Class 1 property if:

(i) The improved real property is unoccupied due to a fire, flood, or other casualty, if the property was occupied at the time of the casualty, and the fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner or sole tenant;

(ii) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a property which has been offered for sale or rental for more than 8 months shall be presumed not to be offered for sale or rental at a reasonable market price;

(iii) A building permit or a demolition permit has been issued and construction or demolition is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(iv) A building permit has been issued during the 24 months preceding the current tax year;

(v) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation;

(vi) An application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year or as of March 31 of the current tax year, before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor's Agent for Historic Preservation, or the National Capital Planning Commission;

(vii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;

(viii) The unimproved real property is used as a parking lot and each approval required from the District government for use as a parking lot has been obtained;

(ix) Unimproved air rights lot that appertains to improved and occupied real property;

(x) Property is designated as a historic landmark under subchapter I of Chapter 11 of Title 6, or is the subject of an agreement that runs with the land and provides for the preservation of certain historic features of the improvement;

(xi) The unimproved real property is the subject of a public hearing on a proposed overlay zone or on a proposed downzoning of the zone district classification of the real property (other than a downzoning under § 1-301.67 or § 1-301.68 [see now § 1-306.01 et seq.]); or

(xii) The unimproved real property is encumbered by a deed of trust that was recorded during the 24 months preceding the current tax year.

(D) Unimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:

(i) The unimproved real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 Property separated by the alley from the unimproved real property.

(E) Real property owned by a qualifying nonprofit housing organization under § 47-3505(a) shall be classified as Class 1 property.

(3)

(A) Class 2 Property shall be comprised of commercial real property that is improved and occupied.

(B) Unimproved real property which abuts Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the Class 2 Property have common ownership.

(C) Commercial real property that is unimproved or unoccupied shall remain classified as Class 2 Property if:

(iii) A building permit or a demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(iv) A building permit has been issued during the 24 months preceding the current tax year;

(v) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation;

(vi) An application for a necessary approval for development of the real property is pending, as of September 30 of the preceding tax year or as of March 31 of the current tax year, before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Board, the Mayor's Agent for Historic Preservation, or the National Capital Planning Commission;

(vii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;

(viii) The unimproved real property is used as a parking lot and each approval required from the District government for use as a parking lot has been obtained;

(ix) An unimproved air rights lot that appertains to improved and occupied real property;

(xii) The unimproved real property is encumbered by a deed of trust that was recorded during the 24 months preceding the current tax year.

(D) Class 2 Property shall include, as of September 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the current District of Columbia Generalized Land Use Map that is part of the Comprehensive Plan; provided, that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, the term "predevelopment activities" means completion of one of the following:

(i) Preparation of subdivision or large tract review applications;

(ii) Preparation or application for District of Columbia permits or authorizations to proceed with development;

(iii) Participation in special planning or transportation studies prepared in conjunction with the District of Columbia; or

(iv) Completion of environmental assessment or mitigation studies prepared in conjunction with the District of Columbia.

(E) Unimproved real property which is separated from Class 2 Property by a public alley less than 30 feet wide shall be classified as Class 2 Property if:

(i) The unimproved real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 2 Property separated by the alley from the unimproved real property.

(4) Class 3 Property shall be comprised of all real property which cannot be classified as either Class 1 Property or Class 2 Property.

(c-7)

(1) For tax year 2007 and thereafter, the following classes of taxable real property are established:

(A) Class 1 Property;

(B) Class 2 Property; and

(C) Class 3 Property.

(2)

(A) Except as otherwise provided in this paragraph, Class 1 Property shall be comprised of residential real property that is improved and used exclusively for nontransient residential dwelling purposes; provided, that the improved and nontransient real property shall not be classified as Class 1 Property if it appears on the list compiled under § 42-3131.16.

(B) Unimproved real property benefiting from an exemption under subsection (c-6)(2)(C) of this section on December 27, 2006 shall continue to benefit from the exemption and be classified as Class 1 Property for the duration permitted under that subsection; provided, that the exemption shall not be valid after September 30, 2007; provided further, that the unimproved real property may qualify for an exemption in effect after December 28, 2006 and subject to the time restriction and exclusion set forth in subparagraph (E)(ii)(II) of this paragraph.

(C) Real property used as a parking lot shall be classified as Class 1 Property if it appertains to improved Class 1 Property and if each approval required from the District government for use as a parking lot has been obtained.

(D) Unimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the real property and the Class 1 Property have common ownership.

(E)

(i) Unimproved, residential real property shall be classified as Class 1 Property if:

(I) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a real property which has been offered for sale for more than 8 months shall be presumed not to be offered for sale at a reasonable market price, and a rental offered for rental for more than 90 days shall be presumed not to be offered for rental at a reasonable market price;

(II) A building permit to construct at least one nontransient dwelling unit has been issued and construction is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(III) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right;

(IV) The unimproved air rights lot appertains to improved Class 1 Property;

(V) For a period not to exceed 12 months, the real property is the subject of a pending application for a necessary approval for development before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor's Agent for Historic Preservation, the Department of Public Works, or the National Capital Planning Commission; or

(VI) For a period not to exceed 12 months, the real property is encumbered by a deed of trust that was recorded during the 12 months preceding the current tax year.

(ii)

(I) Classification of unimproved real property as Class 1 Property pursuant to sub-subparagraph (i)(I), (II), (III), or (IV) of this subparagraph shall not exceed 3 tax years under the same, substantially similar, or related ownership.

(II) Notwithstanding sub-sub-subparagraph (I) of this sub-subparagraph, unimproved real property under the same, substantially similar, or related ownership that qualified for and benefited from an exemption under sub-subparagraph (i) of this subparagraph or under subsection (c-6)(2)(C) or (c-6)(2)(E) of this section, other than under sub-subparagraph (i)(V) or (VI) of this subparagraph or a similar provision of subsection (c-6)(2)(C), for 3 or more tax years shall no longer be classified as Class 1 Property beginning in tax year 2008.

(III) For purposes of this sub-subparagraph, ownership shall be related if a deduction for a loss from the sale or exchange of properties between taxpayers would be disallowed under section 267 of the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete liquidation shall not apply.

(F) Unimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:

(i) The real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and

(iii) The real property and the Class 1 Property separated by the alley from the real property have common ownership.

(3)

(A) Except as otherwise provided in this paragraph, Class 2 Property shall be comprised of improved commercial real property; provided, that such improved real property shall not be classified as Class 2 Property if it appears on the list compiled under § 42-3131.16.

(B) Unimproved real property benefiting from an exemption under subsection (c-6)(3)(C) of this section on December 27, 2006 shall continue to benefit from the exemption and be classified as Class 2 Property for the duration permitted under subsection (c-6)(3)(c) of this section; provided, that the exemption shall not be valid after September 30, 2007; provided further, that the unimproved real property may qualify for an exemption in effect after December 28, 2006 and subject to the time restriction and exclusion set forth in subparagraph (E)(ii)(II) of this paragraph.

(C) Real property used as a parking lot shall be classified as Class 2 Property if each approval required from the District government for use as a parking lot has been obtained.

(D) Unimproved real property which abuts Class 2 Property shall be classified as Class 2 Property if the real property and the Class 2 Property have common ownership.

(E)

(i) Unimproved, commercial real property shall be classified as Class 2 Property if:

(I) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year, provided, that a real property which has been offered for sale for more than 8 months shall be presumed not to be offered for sale at a reasonable market price, and a rental offered for rental for more than 90 days shall be presumed not to be offered for rental at a reasonable market price;

(II) A building permit to construct an improvement or a parking lot has been issued and construction is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(III) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right;

(IV) The unimproved air rights lot appertains to improved Class 2 Property; or

(VI) For a period not to exceed 12 months, the real property is encumbered by a deed of trust that was recorded during the 12 months preceding the current tax year.

(ii)

(I) Classification of unimproved real property as Class 2 Property pursuant to sub-subparagraph (i)(I), (II), or (III) of this subparagraph shall not exceed 3 tax years under the same, substantially similar, or related ownership.

(II) Notwithstanding sub-sub-subparagraph (I) of this sub-subparagraph, unimproved real property under the same, substantially similar, or related ownership that qualified for and benefited from an exemption under sub-subparagraph (i) of this subparagraph or under subsection (c-6)(3)(C) of this section, other than under sub-subparagraph (i)(IV) or (V) of this subparagraph or under a similar provision of subsection (c-6)(3)(C) of this section, for 3 or more tax years shall no longer be classified as Class 2 Property beginning in tax year 2008.

(F) Unimproved real property which is separated from Class 2 Property by a public alley less than 30 feet wide shall be classified as Class 2 Property if:

(i) The real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and

(iii) The real property and the Class 2 Property separated by the alley from the real property have common ownership.

(G) Class 2 Property shall include, as of September 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the current District of Columbia Generalized Land Use Map that is part of the Comprehensive Plan; provided, that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, the term "predevelopment activities" means completion of one of the following:

(i) Preparation of subdivision or large tract review applications;

(ii) Preparation or application for District of Columbia permits or authorizations to proceed with development;

(iii) Participation in special planning or transportation studies prepared in conjunction with the District of Columbia; or

(iv) Completion of environmental assessment or mitigation studies prepared in conjunction with the District of Columbia.

(4) Class 3 Property shall be comprised of all real property which cannot be classified as Class 1 Property or Class 2 Property.

(c-8)

(1) For tax year 2011 and thereafter, the following classes of taxable real property are established:

(A) Class 1 Property;

(B) Class 2 Property;

(C) Class 3 Property; and

(D) Class 4 Property.

(2)

(A) Except as otherwise provided in this paragraph and subject to paragraphs (4) and (5) of this subsection, Class 1 Property shall be comprised of residential real property that is improved and its legal use (or in the absence of use, its highest and best permitted legal use) is for nontransient residential dwelling purposes; provided, that the property may be used to host transient guests pursuant to an unexpired short-term rental license endorsement issued pursuant to [§ 30-201.04].

(B) Unimproved real property located within a zone designated as residential shall be classified as Class 1 Property.

(D) Unimproved real property that abuts Class 1 Property shall be classified as Class 1 Property if the real property and the Class 1 Property have common ownership.

(E) Repealed.

(F) Unimproved real property that is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:

(i) The real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and

(iii) The real property and the Class 1 Property separated by the alley from the real property have common ownership.

(3) Class 2 Property shall be comprised of all real property which is not Class 1 Property, Class 3 Property, or Class 4 Property.

(4)

(A) Class 3 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.16.

(B) The Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.16.

(5)

(A) Class 4 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.17.

(B) The Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.17.

(d) For purposes of this section:

(1) The term "condominium" means the ownership of a single dwelling unit in a horizontal property regime as that term is used in § 42-2003.

(2) The term "cooperative housing association" means an association, whether incorporated or unincorporated, organized for the purpose of owning and operating residential real property, the shareholders or members of which, by reason of their ownership of a stock or membership certificate, a proprietary lease or other evidence of membership, are entitled to occupy a single dwelling unit pursuant to the terms of a proprietary lease or occupancy agreement.

(3) The term "dwelling unit" means any room or group of rooms forming a single unit which is used for living, sleeping, and the preparation and eating of meals.

(4) The term "nontransient" means occupancy of a dwelling unit or units by any person for a period of more than 5 consecutive days during any 1 stay in such unit.

(5) [Repealed].

(d-1) For the purposes of this section:

(1) Repealed.

(2) Repealed.

(3) [Repealed].

(3A) [Repealed].

(4) Repealed.

(4A) The determination that real property belongs on a list compiled under § 42-3131.16 or § 42-3131.17 (and, indirectly, its Class 3 or 4 Property classification) shall only be appealed as prescribed under § 42-3131.15, notwithstanding any other provision of law. A notice of final determination by the Mayor shall be a prerequisite before an appeal to the Real Property Tax Appeals Commission for the District of Columbia may be taken.

(4B) The classification of Class 3 or 4 Property in the notice of proposed assessment under § 47-824 and § 47-829 shall not be appealed under the provisions applicable to the appeal of such notice and any statement in such notice that the real property shall be classified as other than Class 3 or 4 Property shall not be effective, notwithstanding any other provision of law.

(5)

(A) Repealed.

(A-i)

(i) Whenever the classification of improved real property that appears on a list compiled under § 42-3131.16 or § 42-3131.17 shall change to Class 3 or Class 4 Property:

(I) The owner shall notify the Department of Consumer and Regulatory Affairs within 30 days of the change by making application to register the property as vacant under §§ 42-3131.06 and 42-3131.07, which the change in classification of the real property to Class 3 or 4 Property shall be retroactive to the half tax year during which one of the following first occurred:

(aa) The owner of the real property registered the real property as vacant under § 42-3131.06; or

(bb) The owner of real property received a notice of final determination under § 42-3131.15;

(II) The Office of Tax and Revenue shall re-classify the real property without limitation for each tax year or half tax year after receipt of the list under § 42-3131.16 or § 42-3131.17; and

(III) Penalty and interest as prescribed under § 47-811(c) shall be assessed beginning 30 days after the date of the real property tax bill that issues after any administrative appeals have been exhausted.

(ii) Whenever improved real property that appears on a list compiled under § 42-3131.16 or § 42-3131.17 shall cease to be Class 3 or Class 4 Property, the owner shall notify the Department of Consumer and Regulatory Affairs within 30 days after the change in the manner as may be prescribed by the Mayor. If the request for a change in classification is approved, the change in classification of the real property from Class 3 Property shall be retroactive to the half tax year when the Department of Consumer and Regulatory Affairs was so notified. If the request is denied, the owner shall have a right to administrative review of the determination as provided under § 42-3131.15.

(B) Notwithstanding subparagraph (A-i) of this paragraph, if the real property is transferred and continued to qualify for the classification 30 days or less before the date of execution of the deed of transfer, the grantor shall not be required to notify the applicable agency of the change in classification.

(C) If the tax is paid within 30 days of the corresponding bill, timely notification of the change in classification shall preclude assessment of penalty and interest.

(6) If Class 3 Property or Class 4 Property changes classification during the period October 1 through March 31 of the tax year, the Class 3 Property or Class 4 Property shall be taxed at the rate of the new classification for the entire tax year. If Class 3 Property or Class 4 Property changes classification during the period April 1 through September 30, the Class 3 Property or Class 4 Property shall be taxed at the rate of the new classification for the second installment only.

(7)

(A) The Mayor may contract with a collection agency inside or outside of the District to verify the contents of any filings and returns and the eligibility of the real property to a classification under this section.

(B) All funds collected by the collection agency and belonging to the District shall be remitted to the Mayor not less than once a month. Forms to be utilized for the remittances may be prescribed by the Mayor. The Mayor may require that the collection agency furnish a bond securing compliance with the provisions of this paragraph and the contract with the District.

(C) At the discretion of the Mayor:

(i) The collection agency may charge a collection fee not in excess of 25% of the total amount of the delinquent taxes, excluding penalties and interest, that is actually collected; or

(ii) The collection agency may be remunerated by fee, percentage of taxes collected, or both.

(D) Notwithstanding any other provision contained in this title, confidential information related to the owner of the real property may be provided to a collection agency for purposes of collecting a delinquent tax under this section. If the information is provided to a collection agency under this paragraph, the collection agency shall not disclose the information to a third party, other than the owner (or his or her representative), unless the Mayor would be authorized by law to make the disclosure. A collection agency, or employee of a collection agency, violating the provisions of this subsection shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or imprisoned for not more than 180 days, or both. All prosecutions under this paragraph shall be brought in the Superior Court of the District of Columbia on information by the Attorney General for the District of Columbia in the name of the District of Columbia.

(d-2) If real property tax is owing as a result of a change in classification to Class 3 Property or Class 4 Property, the following shall apply:

(1) If the real property was transferred, the grantor shall be personally liable for the amount of the delinquent real property tax which was not paid timely during the period when the grantor owned the real property, together with interest and penalty at the same rate as provided in this chapter for the late payment of real property tax. The tax shall be considered due on the date that the total amount of real property tax was due but unpaid because of the erroneous or improper classification, and shall be collected in the manner prescribed under Chapter 44.

(2) Notwithstanding paragraph (1) of this subsection, if the real property was transferred and the grantee failed to record timely a deed under § 47-1431, the real property shall be liable for the amount of the delinquent real property tax which was not paid timely, together with interest and penalty as provided in this chapter for the late payment of real property tax.

(3) In all other cases, the real property shall be liable for the amount of the delinquent real property tax which was not paid timely, together with interest and penalty as provided in this chapter for the late payment of real property tax.

(e) Repealed.

(f)

(1) Commencing with the property tax year beginning July 1, 1980, and ending June 30, 1981, and for each tax year thereafter, when the uses of real property fall within more than 1 of the classes enumerated in this section, the total assessed value of the property shall be apportioned into the appropriate classes of real property as defined in this section, and each of the areas resulting from the apportionment shall be taxed at the appropriate real property tax rate.

(2) For purposes of this subsection, the Mayor shall devise a method for apportioning, by class, real property whose uses fall within more than 1 class. The Mayor may require an owner of real property to submit, at a time and in a form prescribed, such information relating to the uses of property as in the Mayor's judgment will assist in the apportionment of property by class for real property classification purposes as required by this section.

D.C. Code § 47-813

Sept. 3, 1974, 88 Stat. 1052, Pub. L. 93-407, title IV, § 412a; as added Nov. 20, 1979, D.C. Law 3-37, § 2(b), 26 DCR 1564; July 24, 1982, D.C. Law 4-129, § 3, 29 DCR 2405; Mar. 14, 1984, D.C. Law 5-60, § 2, 31 DCR 108; Nov. 19, 1985, D.C. Law 6-51, § 3(b), (c), 32 DCR 5681; Sept. 20, 1990, D.C. Law 8-160, § 2(a), 37 DCR 4653; Sept. 27, 1990, D.C. Law 8-172, § 2(a), 37 DCR 4844; Mar. 7, 1992, D.C. Law 9-62, § 2(a), 38 DCR 7291; Oct. 7, 1992, D.C. Law 9-177, §3, 39 DCR 5868; Sept. 30, 1993, D.C. Law 10-25, § 102, 40 DCR 5489; Jan. 26, 1994, D.C. Law 10-66, § 3, 40 DCR 7358; Feb. 5, 1994, D.C. Law 10-68, § 41, 40 DCR 6311; Sept. 24, 1994, D.C. Law 10-178, § 5, 41 DCR 5205; Sept. 26, 1995, D.C. Law 11-52, § 107, 42 DCR 3684; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 20, 1999, D.C. Law 13-38, § 2702(c), 46 DCR 6373; June 9, 2001, D.C. Law 13-305, § 502(e), (f), 48 DCR 334; June 25, 2002, D.C. Law 14-147, § 2(b), 49 DCR 4219; June 5, 2003, D.C. Law 14-307, § 1303(b), 49 DCR 11664; Apr. 22, 2004, D.C. Law 15-148, §2, 51 DCR 2605; Apr. 13, 2005, D.C. Law 15-354, § 73(b)(1), 52 DCR 2638; Oct. 20, 2005, D.C. Law 16-33, § 1281(a)(2), 52 DCR 7503; Aug. 15, 2008, D.C. Law 17-216, § 4(b), 55 DCR 7500; Mar. 3, 2010, D.C. Law 18-111, § 7102, 57 DCR 181; Sept. 24, 2010, D.C. Law 18-223, § 2043(b), 57 DCR 6242; Apr. 8, 2011, D.C. Law 18-363, § 3(g)(2), 58 DCR 963; Apr. 25, 2019, D.C. Law 22-307, § 201(a), 66 DCR 898.

Applicability and expiration of subtitle HH of title I, §§ 1280 to 1284, of D.C. Law 16-33: Sections 1282 and 1283 of D.C. Law 16-33, as amended by D.C. Law 17-219, § 7068(f), (g), provided:

"Sec. 1282. Applicability; conditional effect.

"(a) Section 1281 shall apply for taxable years beginning after September 30, 2005.

"(b) Repealed.

"Sec. 1283. Repealed."

Application of Law 14-307: Section 1304 of D.C. Law 14-307 provided: "Sections 1302 and 1303 shall apply as of October 1, 2002."

Mayor authorized to issue rules: Section 4 of D.C. Law 8-146 provided that the Mayor shall, pursuant to subchapter I of Chapter 5 of Title 2 issue proposed rules to implement the provisions of this act. The proposed rules shall be submitted to the Council no later than June 15, 1990, for a 30-day period of review. If the Council does not approve or disapprove the proposed rules, in whole or in part by resolution within this 30-day review period, the proposed rules shall be deemed approved.

Section 4 of D.C. Law 8-160 provided that the Mayor shall, pursuant to subtitle I of Chapter 5 of Title 2 issue proposed rules to implement the provisions of the District of Columbia Real Property Tax Reclassification Amendment Act of 1990. The proposed rules shall be submitted to the Council for a 60-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 60-day review period, the proposed rules shall be deemed approved. Nothing in this section shall affect any requirements imposed upon the Mayor by subtitle I of Chapter 5 of Title 2.

Mayor authorized to issue rules: See Historical and Statutory Notes following § 47-812.

Section 3 of D.C. Law 14-147 provided that section 2 shall apply as of October 1, 2001, except insofar as the retroactive application results in an increase of tax to the real property or owner thereof.

Applicability of D.C. Law 18-363: Section 3a of D.C. Law 18-363, as added by D.C. Law 19-155, § 4, provided: "Sec. 3a. Applicability; transition.

"(a) Sections 2 and 3 shall apply upon Council approval and appointment by the Mayor of a full-time Chairperson and a full-time Vice Chairperson to the Real Property Tax Appeals Commission for the District of Columbia.

"(b) Notwithstanding subsection (a) of this section, the Mayor shall appoint the members of the Real Property Tax Appeals Commission for the District of Columbia with the advice and consent of the Council in accordance with the provisions of section 2(b)(3)."

Applicability

Applicability of D.C. Law 22-307: Section 15 of D.C. Law 23-68 repealed § 301 of D.C. Law 22-307. Therefore the changes made to this section by D.C. Law 22-307 have been implemented.

Applicability of D.C. Law 22-307: Section 6(b) of D.C. Act 23-165 repealed, on an emergency basis, § 301 of D.C. Law 22-307. Therefore the changes made to this section by D.C. Law 22-307 have been implemented.

Applicability of D.C. Law 22-307: § 301 of D.C. Law 22-307 provided that the change made to this section by § 201(a) of D.C. Law 22-307 is subject to the inclusion of the law's fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.