1. (a)

   1. (1) At the time a deed, including a lease or ground rent for a term (with renewals) that is at least 30 years, is submitted for recordation, it shall be taxed at the rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section), as follows:

      1. (A) A deed that conveys title to real property in the District shall be taxed at a rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section) applied to the consideration for the deed; provided, that if there is no consideration for a transfer or if the consideration for the transfer is nominal, the rate shall be applied to the fair market value of the real property, as determined by the Mayor.

      2. (B)

         1. (i) If there is a lease or ground rent for a term (with renewals) that is at least 30 years, the recordation tax shall be based upon the average annual rent over the term of the lease, including renewals, capitalized at a rate of 10%, plus any additional consideration payable; provided that the amount to which the rate is applied shall not exceed the fair market value of the real property covered by the interest transferred.

         2. (ii) If the average annual rent of the lease or ground rent for a term (including renewals) that is at least 30 years cannot be determined, the recordation tax will be based on the greater of:

            1. (I) One hundred and five percent of the minimum average annual rent ascertainable from the terms of the lease, capitalized at a rate of 10%, plus any additional consideration payable; or
            2. (II) One hundred and fifty percent of the assessed value of the real property covered by the interest transferred.
         3. (iii) If there is no consideration for a lease or ground rent or the consideration is nominal, the rate of tax shall be applied to the fair market value of the real property covered by the lease or ground rent, as determined by the Mayor.
   2. (2) Notwithstanding paragraph (1) of this subsection, at the time it is submitted for recordation, a deed that evidences a transfer of an economic interest in real property shall be taxed at the rate of 2.9% of the consideration allocable to the real property; provided, that, beginning October 1, 2009, in the case of a transfer of an economic interest in a cooperative housing association that is in connection with a grant, transfer, or assignment of a proprietary leasehold or other proprietary interest where the consideration allocable to the real property is less than $400,000, the rate of tax shall be 2.2%.

   3. (3)

      1. (A) Notwithstanding paragraph (1) of this subsection, at the time a security interest instrument is submitted for recordation, it shall be taxed at a rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section) of the total amount of debt incurred that is secured by the interest in real property; provided, that if the existing debt is refinanced, the rate shall be applied only to the principal amount of the new debt in excess of the principal balance due on the existing debt to the extent that such existing debt (including any prior debt that was previously refinanced by the existing debt) was:

         1. (i) Previously taxable under this paragraph and the tax thereon was timely and properly paid; or
         2. (ii) Exempt under § 42-1102 or not otherwise taxable, including purchase money mortgages described in § 42-1102(5).

      2. (B) Any amendment, modification, or restatement of a security interest instrument shall be deemed a refinance of the entire aggregate debt owed, unless the amendment, modification, or restatement is a supplemental deed. With such a deemed refinance, the rate in subparagraph (A) of this paragraph shall be applied only to the principal amount of the modified debt (including amounts paid to the borrower on the existing security interest instrument during the preceding 12 months) in excess of the principal balance due on the existing debt (before any such payment) to the extent that the existing debt (including any prior debt that was previously refinanced by the existing debt) was:

         1. (i) Previously taxable under this paragraph and the tax thereon was timely and properly paid; or
         2. (ii) Exempt under § 42-1102 or not otherwise taxable, including purchase money mortgages described in § 42-1102(5).
   4. (4) Security interest instruments that qualify for exemption under § 42-1102 shall be exempt from the recordation tax.
2. (a-1) Repealed.
3. (a-2) Repealed.
4. (a-3) Repealed.
5. (a-4) Beginning October 1, 2006, except for residential properties transferred by deed of title for a consideration less than $400,000, an additional tax of .35% is imposed upon a deed that is subject to the tax under subsection (a)(1) of this section. Of the funds collected under this subsection, 15% shall be deposited in the Housing Production Trust Fund established by § 42-2802, and the remainder shall be deposited in the General Fund of the District of Columbia.
6. (a-5) Expired.

7. (b)

   1. (1) Each such deed shall be accompanied by a return in such form as the Mayor may prescribe, executed by all parties to the deed, setting forth the consideration for the deed or debt secured by the deed, and such other information as the Mayor may require.
   2. (2) The return shall be an integral part of the deed when prescribed and as required by regulation.
   3. (3) The return shall not be confidential or subject to the provisions of §§ 47-1805.04 and 47-4406, unless otherwise provided by regulation.

8. (b-1)

   1. (1) A purchase money mortgage or purchase money deed of trust shall:

      1. (A) Be fully executed within 30 days of the date that the deed conveying title to the real property to the purchaser is fully executed; and
      2. (B) Be recorded within 30 days after the date that the deed conveying title to the purchaser of the real property is duly recorded.

   2. (2) A purchase money mortgage or purchase money deed of trust submitted to the Mayor for recordation shall:

      1. (A) Be executed by the purchaser of the real property as part of a series of transactions conveying title to real property to the purchaser;
      2. (B) Reference the deed conveying title to the purchaser of the real property by date and instrument number;
      3. (C) Recite on the face of the document that it is a purchase money mortgage or purchase money deed of trust; and
      4. (D) Recite on the face of the document the amount of purchase money that it secures.
9. (c) The parties to a deed which is submitted to the Mayor for recordation shall be jointly and severally liable for payment of the taxes imposed by this section; provided, that neither the United States nor the District of Columbia shall be jointly and severally liable with the transferee; provided further, that, beginning October 1, 2009, in the case of a deed that evidences a transfer of an economic interest in a cooperative housing association, the cooperative housing association shall be jointly and severally liable with the parties to the deed for the payment of taxes imposed by this section regardless of whether the cooperative housing association itself is a party to the deed.
10. (d) The deed and accompanying return shall be due as prescribed in § 47-1431(a) for the recordation of a deed; provided, that if the deed and return are submitted to the Recorder of Deeds before the due date, the return shall be due and taxes shall be due and owing at the time of submission.

11. (e)

    1. (1) Beginning October 1, 2017, for eligible property purchased by a first-time District homebuyer, the rate of tax provided in subsections (a) and (a-4) of this section shall be reduced as follows; provided, that the requirements of paragraph (2) of this subsection are met; provided further, that the entire benefit of the reduced recordation tax rate shall be allocated to the grantees of the eligible property, as shown on the settlement statement or closing disclosure form:

       1. (A) To 0.725% for a deed of title; or

       2. (B) For an economic interest in a cooperative unit:

          1. (i) To 1.825% when consideration allocable to the real property is less than $400,000; or
          2. (ii) To 2.175% when consideration allocable to the real property is $400,000 or greater.

    2. (2)

       1. (A) To be eligible for the reduced recordation tax rate provided by this subsection, the applicant for the reduced rate shall, at the time the deed is offered for recordation:

          1. (i) Certify that the applicant is a first-time District homebuyer and is a bona fide District of Columbia resident;
          2. (ii) Provide proof that the combined federal adjusted gross income, as shown on all the owners' and household members' federal income tax returns originally due or filed immediately before (if filed before the original due date) the deed is offered for recordation, is no higher than 180% of the Area Median Income as provided before the beginning of the real property tax year (and effective for such tax year) by the United States Department of Housing and Urban Development as a direct calculation without taking into account any adjustment;
          3. (iii) Provide proof that the real property to be purchased is eligible property; and
          4. (iv) Submit a copy of the homestead deduction application for the eligible property, signed by the applicant.
       2. (B) For purposes of subparagraph (A)(ii) of this paragraph, the term "household" excludes any tenant occupying a separate dwelling unit under a written lease for fair market value.
    3. (3) The Mayor or the Chief Financial Officer of the District of Columbia may require the applicant to provide such documentation as may be necessary or appropriate to substantiate entitlement to the reduced rate of tax provided under this subsection.

12. (f) By December 1 of the 4th year of the applicability of the recordation reduction tax benefit established by subsection (e) of this section, the Mayor shall submit a report to the Council that analyzes the impact of the recordation reduction tax benefit for first-time District homebuyers, which shall include:

    1. (1) An analysis of the recordation tax rate reduction on homeownership in the District;
    2. (2) The number of households who received the recordation tax rate reduction through December 31, 2021.
    3. (3) The total number of home sales in the District within the time frame of the recordation tax rate reduction;
    4. (4) An evaluation of the access to housing for people within the affected income range with the time frame of the recordation tax rate reduction;
    5. (5) The overall housing affordability in the District each year that the recordation tax rate reduction was in place; and
    6. (6) A recommendation regarding whether or not to continue the recordation reduction tax benefit.
13. (g) Notwithstanding subsection (c) of this section and § 47-4421, any subsequent deficiency of recordation tax determined to be owed on a deed taxed at the rate provided under subsection (e) of this section when the deed was accepted for recordation shall be the liability of the grantee or grantees solely and shall not create a lien on the real property that was transferred under such deed.
14. (h) Funds collected under this section shall be deposited pursuant to § 42-1122.

Editor's Notes

Applicability of D.C. Law 21-36: Section 7048(b) of D.C. Law 21-36 provided that §§ 7027, 7031, 7036, and 7037 of the act shall apply as of October 1, 2014.

Exemption from taxation for conversion of a partnership to a limited liability company: For exemption from the recordation tax imposed by this section in connections with the conversion of a partnership to a limited liability company, see § 29-1013(k) as added by § 2(d) of D.C. Law 11-38.

Section 7111 of D.C. Law 17-219 provided that this subtitle shall apply as of October 1, 2008.

Section 401 of D.C. Law 16-123 provided: “Sec. 401. Sunset. If, pursuant to section 141(a)(1), there are unallocated local revenues, from existing revenue sources, sufficient to fund Title I, then section 141(a)(2) and (3), and section 161 shall sunset.”.

Application of Law 14-307: Section 1104 of D.C. Law 14-307 provided: “Sections 1102 and 1003 shall apply as of January 1, 2003.”

Application of Law 11-198: Section 1001 of D.C. Law 11-198 provided that Titles I, II, III, V, and VI and sections 405 and 406 of the act shall apply after September 30, 1996.

Exemption from taxation for conversion of a partnership to a limited liability company: Section 3 of D.C. Law 11-38 provided that § 2 of the act shall apply as of July 23, 1994.

Application of Law 10-128: See Historical and Statutory Notes following § 42-1101.

Application of 8-17: Section 12 of D.C. Law 8-17 provided that §§ 2(a), (b) and (c) and 3 shall apply to all taxable years beginning after December 31, 1988. Section 2(d) and (e) shall apply to all taxable periods beginning after September 30, 1989. All other sections of the act shall apply as of July 1, 1989.

Application of Law 8-20: See Historical and Statutory Notes following § 42-1101.

Short Title

Short title: Section 7109 of D.C. Law 17-219 provided that subtitle M of title VII of the act may be cited as the “Economic Interests Tax Amendment Act of 2008”.

Short title of subtitle V of title I of Law 15-205: Section 1231 of D.C. Law 15-205 provided that subtitle V of title I of the act may be cited as Recordation and Transfer Tax Reduction Act of 2004.

History

Mar. 2, 1962, 76 Stat. 12, Pub. L. 87-408, title III, § 303

Oct. 21, 1975, D.C. Law 1-23, title II,§ 203, 22 DCR 2097

July 13, 1978, D.C. Law 2-91, § 304, 24 DCR 9765

Sept. 13, 1980, D.C. Law 3-92, § 101(c), 27 DCR 3390

July 25, 1989, D.C. Law 8-17, § 8(a), 36 DCR 4160

Sept. 9, 1989, D.C. Law 8-20, § 2(c), 36 DCR 4564

June 14, 1994, D.C. Law 10-128, § 101(e), 41 DCR 2096

April 9, 1997, D.C. Law 11-198, title I, § 101, 43 DCR 4569

April 9, 1997, D.C. Law 11-255, § 59, 44 DCR 1271

June 9, 2001, D.C. Law 13-305, § 506(c), 48 DCR 334

Oct. 26, 2001, D.C. Law 14-42, § 9, 48 DCR 7612

Apr. 4, 2003, D.C. Law 14-282, § 9(b), 50 DCR 896

June 5, 2003, D.C. Law 14-307, § 1102, 49 DCR 11664

Dec. 7, 2004, D.C. Law 15-205,§ 1232, 51 DCR 8441

Apr. 13, 2005, D.C. Law 15-354, §§ 61, 94, 52 DCR 2638

D.C. Law 16-123, § 161(a), 53 DCR 2843

June 8, 2006, D.C. Law 16-123, § 161(a), 53 DCR 2843

Mar. 2, 2007, D.C. Law 16-192,§§ 1132(b), 2053, 53 DCR 6899

Mar. 14, 2007, D.C. Law 16-294,§ 12, 54 DCR 1086

Aug. 16, 2008, D.C. Law 17-219, §§ 2003(a), 7110, 55 DCR 7598

Mar. 25, 2009, D.C. Law 17-353, §§ 135, 170(b), 56 DCR 1117

Mar. 3, 2010, D.C. Law 18-111, § 7091(b), 57 DCR 181

Sept. 20, 2012, D.C. Law 19-168, §§ 7102(c), 7122, 59 DCR 8025

Oct. 22, 2015, D.C. Law 21-36, § 7031, 60 DCR 10905

Apr. 7, 2017, D.C. Law 21-268, § 2(b)

Dec. 13, 2017, D.C. Law 22-33, § 7142(b)

July 3, 2018, D.C. Law 22-124, § 107(b)

Oct. 30, 2018, D.C. Law 22-168, § 7092(b)

Sept. 11, 2019, D.C. Law 23-16, § 7022

Sept. 6, 2023, D.C. Law 25-50, § 2182(a)

Delegation of Authority

Delegation of authority under D.C. Act 8-42, the “District of Columbia Recordation of Economic Interests in Real Property Tax Amendment Act of 1989”, see Mayor’s Order 89-205, September 11, 1989.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7016(x) and (y)(2) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

For temporary (90 days) amendment of this section and amendment of D.C. Law 20-155, § 7103(d), see § 2(n) Fiscal Year 2015 Budget Support Clarification Congressional Review Emergency Amendment Act of 2014 (D.C. Act 20-587, January 13, 2015, 62 DCR 1294, 21 STAT 758).

For temporary (90 days) amendment of this section and amendment of D.C. Law 20-155, § 7103(d), see § 2(n) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-461, November 6, 2014, 61 DCR 11784, 20 STAT 4368).

For temporary (90 day) amendment of section, see § 7122 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

For temporary (90 day) amendment of section, see § 7102(c) of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

For temporary (90 day) amendment of section, see § 7122 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 7102(c) of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 2(c) of Cooperative Housing Association Economic Interest Recordation Tax Emergency Amendment Act of 2011 (D.C. Act 19-194, October 18, 2011, 58 DCR 9160).

For temporary (90 day) amendment of section, see § 2(c) of Cooperative Housing Association Economic Interest Recordation Tax Congressional Review Emergency Amendment Act of 2011 (D.C. Act 19-12, February 11, 2011, 58 DCR 1433).

For temporary (90 day) amendment of section, see § 2(c) of Cooperative Housing Association Economic Interest Recordation Tax Emergency Amendment Act of 2010 (D.C. Act 18-570, October 20, 2010, 57 DCR 10084).

For temporary (90 day) amendment of section, see § 7091(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see §§ 2(c), 3(c) of Cooperative Housing Association Economic Interest Recordation Tax Emergency Amendment Act of 2009 (D.C. Act 18-234, November 20, 2009, 56 DCR 9046).

For temporary (90 day) amendment of section, see § 7091(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see §§ 1132(b), 2053 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).

For temporary (90 day) amendment of section, see §§ 2 and 3 of Deed Transfer and Recordation Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-568, December 19, 2006, 54 DCR 3).

For temporary (90 day) amendment of section, see §§ 1132(b), 2053 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).

For temporary (90 day) amendment of section, see §§ 2, 3 of Deed Transfer and Recordation Clarification Emergency Amendment Act of 2006 (D.C. Act 16-481, October 5, 2006, 53 DCR 8379).

For temporary (90 day) amendment of sections, see §§ 1132(b), 2053 of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).

For temporary (90 day) amendment of section, see § 1232 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of section, see § 1232 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1102 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).

For temporary (90 day) amendment of section, see §§ 1102 and 1104 of Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).

For temporary (90 day) amendment of section, see §§ 1102 and 1104 of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

For temporary (90 day) amendment of section, see § 10(b) of Tax Clarity and Related Amendments Congressional Review Emergency Act of 2002 (D.C. Act 14-510, October 23, 2002, 49 DCR 10247).

For temporary (90 day) amendment of section, see § 10(b) of Tax Clarity and Related Amendments Emergency Act of 2002 (D.C. Act 14-456, July 23, 2002, 49 DCR 8107).

For temporary (90 day) amendment of section, see § 10(b) of Tax Clarity and Recorder of Deeds Emergency Act of 2002 (D.C. Act 14-381, June 6, 2002, 49 DCR 5674).

For temporary (90 day) amendment of section, see § 9 of Technical Amendments Emergency Act of 2001 (D.C. Act 14-108, August 3, 2001, 48 DCR 7622).

For temporary (90 day) amendment of section, see § 6(c) of Real Property Tax Clarity and Litter Control Administration Emergency Act of 2001 (D.C. Act 14-22, March 16, 2001, 48 DCR 2706).

For temporary repeal of § 101 of D.C. Act 11-302, see § 3 of the Recordation and Transfer Tax Clarification Emergency Amendment Act of 1996 (D.C. Act 11-402, October 24, 1996, 43 DCR 5806).

For temporary amendment of section, see § 101 of the Fiscal Year 1997 Budget Support Emergency Act of 1996 (D.C. Act 11-302, July 25, 1996, 43 DCR 4181).

For temporary repeal of § 101 of D.C. Law 11-198, see § 2 of the Recordation and Transfer Tax Clarification Emergency Amendment Act of 1996 (D.C. Act 11-402, October 24, 1996, 43 DCR 5806), and see § 2(a) of the Fiscal Year 1997 Budget Support Emergency Amendment Act of 1997 (D.C. Act 12-37, March 18, 1997, 44 DCR 1935).

For temporary (90 days) repeal of § 3 of D.C. Law 21-268, see § 7035 of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 days) amendment of this section, see § 7142(b) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 days) amendment of this section, see § 101(c)(2) of Fiscal Year 2018 Budget Support Clarification Emergency Amendment Act of 2017 (D.C. Act 22-163, Oct. 23, 2017, 64 DCR 10778).

For temporary (90 days) repeal of § 3 of D.C. Law 21-268, see § 7035 of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 7142(b) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 7092(b) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 days) amendment of this section, see § 7092(b) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) amendment of this section, see § 7022 of Fiscal Year 2020 Budget Support Emergency Act of 2019 (D.C. Act 23-91, July 22, 2019, 66 DCR 8497).

For temporary (90 days) amendment of this section, see § 7022 of Fiscal Year 2020 Budget Support Congressional Review Emergency Act of 2019 (D.C. Act 23-112, Sept. 4, 2019, 66 DCR 11964).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2(t)(2) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).

Section 2(c) of D.C. Law 19-74, in subsec. (a)(2), substituted “provided, that, beginning October 1, 2009, in the case of a transfer of an economic interest” for “provided, that in the case of a transfer of shares”, and deleted “, in whole or in part,”; and, in subsec. (c), substituted “; provided further, that, beginning October 1, 2009, in the case of a deed that evidences a transfer of an economic interest in a cooperative housing association, the cooperative housing association shall be jointly and severally liable with the parties to the deed for the payment of taxes imposed by this section regardless of whether the cooperative housing association itself is a party to the deed. for the period at the end.

Section 4(b) of D.C. Law 18-295 provided that the act shall expire after 225 days of its having taken effect.

Section 2(c) of D.C. Law 18-295, in subsec. (a)(2), substituted “provided, that, beginning October 1, 2009, in the case of a transfer of an economic interest” for “provided, that in the case of a transfer of shares” and deleted “, in whole or in part,”; and, in subsec. (c), substituted “; provided further, that, beginning October 1, 2009, in the case of a deed that evidences a transfer of an economic interest in a cooperative housing association, the cooperative housing association shall be jointly and severally liable with the parties to the deed for the payment of taxes imposed by this section regardless of whether the cooperative housing association itself is a party to the deed.” for a period.

For temporary (225 day) amendment of section, see §§ 2(c), 3(c) of Cooperative Housing Association Economic Interest Recordation Tax Temporary Amendment Act of 2009 (D.C. Law 18-109, March 3, 2010, law notification 57 DCR 2828).

For temporary (225 day) amendment of section, see §§ 2, 3 of Deed Transfer and Recordation Clarification Temporary Amendment Act of 2006 (D.C. Law 16-206, March 2, 2007, law notification 54 DCR 2504).

For temporary (225 day) amendment of section, see § 10(b) of the Tax Clarity and Related Amendments Temporary Act of 2002 (D.C. Law 14-228, Mar. 25, 2003, law notification 50 DCR 2741).

For temporary (225 day) amendment of section, see § 10(b) of the Tax Clarity and Recorder of Deeds Temporary Act of 2002 (D.C. Law 14-191, Oct. 5, 2002, law notification 49 DCR 9549).

For temporary (225 day) amendment of section, see § 6(c) of the Real Property Tax Clarity and Litter Control Administration Temporary Amendment Act of 2001 (D.C. Law 14-8, June 13, 2001, law notification 48 DCR 5916).

For temporary (225 day) amendment of section, see § 2(a) of the Fiscal Year 1997 Budget Support Temporary Amendment Act of 1997, (D.C. Law 12-4, May 23, 1997, law notification 44 DCR 3718).

For temporary (225 days) amendment of this section, see § 105(b) of Fiscal Year 2018 Budget Support Clarification Temporary Amendment Act of 2017 (D.C. Law 22-44, Jan. 25, 2018, 64 DCR 12387).

Effect of Amendments

The 2015 amendment by D.C. Law 21-36 added “by deed of title” in (a-4).

The 2012 amendment by D.C. Law 19-168 added “(to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section)” in the introductory language of (a)(1) and (a)(3)(A); in (a)(2), substituted “beginning October 1, 2009, in the case of a transfer of an economic interest” for “in the case of a transfer of shares” and deleted “in whole or in part” following “proprietary interest”; added the (a)(3)(A) and (a)(3)(A)(i) designations; substituted “to the extent that such existing debt (including any prior debt that was previously refinanced by the existing debt) was” for “that was previously subject to tax under this paragraph, which tax on the existing debt” in the introductory language of (a)(3)(A); added “Previously taxable under this paragraph and the tax thereon” in (a)(3)(A)(i); added (a)(3)(A)(ii) and (a)(3)(B); added “provided further, that, beginning October 1, 2009, in the case of a deed that evidences a transfer of an economic interest in a cooperative housing association, the cooperative housing association shall be jointly and severally liable with the parties to the deed for the payment of taxes imposed by this section regardless of whether the cooperative housing association itself is a party to the deed” in (c); and made related and stylistic changes.

D.C. Law 18-111, in subsec. (a)(2), substituted “to the real property; provided, that in the case of a transfer of shares in a cooperative housing association that is in connection with a grant, transfer, or assignment of a proprietary leasehold or other proprietary interest, in whole or in part, where the consideration allocable to the real property is less than $400,000, the rate of tax shall be 2.2%” for “to the real property”.

D.C. Law 17-353 validated a previously made technical correction in the designation of subsec. (a-4).

D.C. Law 17-219, in subsec. (a)(2), substituted “rate of 2.9%” for “rate of 2.2%”; and rewrote subsec. (a-4), which had read as follows: “(a-4) Beginning October 1, 2006, except for residential properties transferred for a consideration less than $400,000, an additional tax of .35% is imposed upon a deed that is subject to the tax under subsection (a)(1) or (3) of this section. An amount equal to 39.93% of the funds collected under this subsection shall be deposited in the Mayor’s Comprehensive Housing Task Force Fund established by § 42-2855.01, 15% of the funds collected shall be deposited in the Housing Production Trust Fund established by § 42-2802, and the balance shall be deposited in the General Fund of the District of Columbia.”

D.C. Law 16-294, in subsec. (a-4), substituted “(a)(1) or (3)” for “(a)(1)”.

D.C. Law 16-192 repealed subsec. (a-3) as added by D.C. Law 16-123 and added a new subsec. (a-4). Subsec. (a-3) as added by D.C. Law 16-123 read as follows: “(a-3) Beginning for fiscal year 2008, if the amount of revenue necessary to fund Chapter 29B of Title 38, in accordance with § 38-2972.01(a)(1) and (2) thereof is not sufficient, the tax imposed on commercial property by subsection (a) of this section shall be increased to rates, as determined annually by the Chief Financial Officer, rounded to the highest increment of 0.1%, sufficient to raise revenue in an amount needed to satisfy the deficiency in the fiscal year, subject to Council approval. After publishing the August revised revenue estimates and prior to September 1 of each year, the Chief Financial Officer shall determine the rates and publish a notice in the District of Columbia Register and on the website of the Office of the Chief Financial Officer stating the amount of the rates. The rates as determined by Chief Financial Officer shall be effective as of October 1 of the following fiscal year.”

D.C. Law 16-123 added subsec. (a-3).

D.C. Law 15-354, in subsecs. (a)(1) and (b), validated previously made corrections.

“(2) The real property qualifies as a homestead as defined by § 47-849(2), the application for the homestead deduction accompanies the deed, and the deed is recorded timely as provided by § 47-1431(a).”

“(1) The consideration of the deed does not exceed $250,000; and

“(a-2) Notwithstanding the provisions of subsection (a)(1) of this section, the rate of tax under subsection (a)(1) of this section shall be 1.1% if:

D.C. Law 15-205, in subsec. (a), substituted “1.1%” for “1.5%” in par. (1), substituted “2.2%” for “3.0%” in par. (2), and substituted “1.1%” for “1.5%” in par. (3); and repealed subsec. (a-2) which had read:

D.C. Law 14-307, in subsec. (a), substituted “1.5” for “1.1” in par. (1) and subpar. (1)(A), substituted “deed, including a lease” for “dead or a lease” in par. (1), deleted “total” from subpar. (1)(A), rewrote pars. (2) and (3); and added subsec. (a-2).

D.C. Law 14-282 rewrote subsecs. (b) and (d); and in subsec. (c), substituted “jointly and severally liable with the transferee” for “subject to such liability”.

D.C. Law 14-42, in subsec. (a)(1)(B)(i), substituted “based upon the average annual rent over the term of the lease, including renewals, capitalized at a rate of 10%” for “based on the capitalization of 10% of the average annual rent over the term of the lease, including renewals”.

“(3) At the time it is submitted for recordation, a security interest instrument shall be taxed at a rate of 1.1% of the total amount of debt incurred which is secured by the interest in real property. However, when existing debt is refinanced, the recordation tax shall only apply to the amount of any new debt incurred over and above the amount of the principal balance due on existing debt if the existing debt was a purchase money mortgage or purchase money deed of trust or subject to taxation under this paragraph.”

“(a)(1) At the time it is submitted for recordation, a deed that conveys title to real property in the District shall be taxed at a rate of 1.1% of the total consideration for the deed.”

D.C. Law 13-305, in subsec. (a), rewrote pars. (1) and (3) which had read:

Prior Codifications

1973 Ed., § 45-723.

1981 Ed., § 45-923.

Section References

This section is referenced in § 10-1202.24, § 29-204.06, § 42-202, § 42-1102, § 42-1104, § 42-2802, § 42-2812.01, § 47-864, § 47-895.32, § 47-1081, § 47-1085, § 47-1088, § 47-1090, § 47-1092, § 47-1401, § 47-4406, § 47-4607, § 47-4608, § 47-4609, § 47-4614, § 47-4620, § 47-4639, and § 47-4701.

Cross References

Partnership conversion to a limited liability company, recordation tax, see § 29-1013.

Deed recordation tax defined, see § 47-1401.

Conservation easements, creation, alteration and validity, see § 42-202.

Applicability

Applicability of D.C. Law 21-268: § 3 of D.C. Law 21-268 provided that the change made to this section by § 2(b) of D.C. Law 21-268 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.

Section 7035 of D.C. Law 22-33 repealed § 3 of D.C. Law 21-268. Therefore the changes made to this section by D.C. Law 21-268 have been implemented.

Section 301 of D.C. Law 22-124 provided that the changes made to this section by D.C. Law 22-124 shall apply as of October 1, 2017.

Expiration of Law

Section 7024 of D.C. Law 23-16 provided that the changes to this section made by section 7022 of D.C. Law 23-16 shall expire on September 30, 2023.