§ 42-1103. Imposition of tax; rate; return; contents; liability for tax; extension of period for filing, and waiver of, return.

Prior Codifications

1981 Ed., § 45-923.

1973 Ed., § 45-723.

Effect of Amendments

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

"(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."

"(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."

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".

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". Prior to amendment, subsecs, (b) and (d) had read as follows:

"(b) Each such deed shall be accompanied by a return under oath in such form as the Mayor may prescribe, executed by all the parties to the deed, setting forth the consideration for the deed or debt secured by the deed, the amount of tax payable, whether the property to which the deed or document refers is a residential real property as defined in § 47-1401, the instrument number and date of any prior recorded supplemental deed, and such other information as the Mayor may require so as to provide an accurate and complete public record of each transfer of residential real property."

"(d) The Council of the District of Columbia with respect to paragraph (1) of this subsection, and the Mayor with respect to paragraph (2) of this subsection, are authorized:"

(1) To prescribe by regulation for reasonable extensions of time for the filing of the return required by subsection (b) of this section; and

(2) To waive as to any party to a deed the requirement for the filing of a return by such party whenever it shall be determined by the Mayor that a return cannot be filed; provided, that any waiver granted by the Mayor to a party shall not, unless specifically authorized, be deemed to be a waiver as to any other party. Any waiver made pursuant to this subsection shall not affect the requirements of subsection (c) of this section.

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); amd added subsec. (a-2). Prior to amendment, pars. (2) and (3) of subsec. (a) had read as follows:

"(2) 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 2.2% of the total consideration allocable to the real property.

"(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; 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 that was previously subject to tax under this paragraph, which tax on the existing debt was timely and properly paid."

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:

"(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:

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

"(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)."

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

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

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 16-294, in subsec. (a-4), substituted "(a)(1) or (3)" for "(a)(1)".

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

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 19-168, in subsec. (a)(1), substituted "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)" for "taxed at the rate of 1.1%"; 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," following "proprietary interest"; rewrote subsec. (a)(3); in subsec. (c), "; 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". Prior to amendment, subsec. (a)(3) read as follows:

"(3) 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% of the total amount of debt incurred which 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 that was previously subject to tax under this paragraph, which tax on the existing debt was timely and properly paid."

Temporary Amendments of Section

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 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 § 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 § 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 §§ 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 §§ 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).

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.

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

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 19-74 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

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 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. 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 (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 (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 § 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 § 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 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 §§ 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 §§ 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 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 § 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 § 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 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 §§ 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 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 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 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).

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 §§ 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 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) 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 § 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 2011 (D.C. Act 19-194, October 18, 2011, 58 DCR 9160).

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 § 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 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 Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

Legislative History of Laws

Law 1-23, the "Revenue Act of 1975," was introduced in Council and assigned Bill No. 1-47, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first, amended first, and second readings, and reconsideration of second reading, on April 15, 1975, June 1, 1975, June 24, 1975 and July 11, 1975, respectively. Signed by the Mayor on July 23, 1975, it was assigned Act No. 1-34 and transmitted to both Houses of Congress for its review.

Law 2-91, the "Residential Real Property Transfer Excise Tax Act of 1978," was introduced in Council and assigned Bill No. 2-101, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first, amended first, second amended first, and second readings on February 21, 1978, March 7, 1978, March 21, 1978 and April 4, 1978, respectively. Signed by the Mayor on April 27, 1978, it was assigned Act No. 2-189 and transmitted to both Houses of Congress for its review.

For legislative history of D.C. Law 3-92, see Historical and Statutory Notes following § 42-1101.

Law 8-17, the "Revenue Amendment Act of 1989," was introduced in Council and assigned Bill No. 8-224, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on May 2, 1989 and May 16, 1989, respectively. Signed by the Mayor on May 26, 1989, it was assigned Act No. 8-34 and transmitted to both Houses of Congress for its review.

For legislative history of D.C. Law 8-20, see Historical and Statutory Notes following § 42-1101.

For legislative history of D.C. Law 10-128, see Historical and Statutory Notes following § 42-1102.01.

Law 11-198, the "Fiscal Year 1997 Budget Support Act of 1996," was introduced in Council and assigned Bill No. 11-741, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on June 19, 1996, and July 3, 1996, respectively. Signed by the Mayor on July 26, 1996, it was assigned Act No. 11-360 and transmitted to both Houses of Congress for its review. D.C. Law 11-198 became effective April 9, 1997.

Law 11-255, the "Second Technical Amendments Act of 1996," was introduced in Council and assigned Bill No. 11-905, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-519 and transmitted to both Houses of Congress for its review. D.C. Law 11-255 became effective on April 9, 1997.

For Law 13-305, see notes following § 42-1101.

For D.C. Law 14-8, see notes following § 42-1101.

For Law 14-42, see notes following § 42-844.06.

For Law 14-191, see notes following § 42-405.

For Law 14-228, see notes following § 42-204.

For Law 14-282, see notes following § 42-204.

Law 14-307, the "Fiscal Year 2003 Budget Support Amendment Act of 2002", was introduced in Council and assigned Bill No. 14-892, which was referred to the Committee on the Whole. The Bill was adopted on first and second readings on October 1, 2002, and November 7, 2002, respectively. Signed by the Mayor on December 4, 2002, it was assigned Act No. 14-543 and transmitted to both Houses of Congress for its review. D.C. Law 14-307 became effective on June 5, 2003.

Law 15-205, the "Fiscal Year 2005 Budget Support Act of 2004", was introduced in Council and assigned Bill No. 15-768, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 14, 2004, and June 29, 2004, respectively. Signed by the Mayor on August 2, 2004, it was assigned Act No. 15-487 and transmitted to both Houses of Congress for its review. D.C. Law 15-205 became effective on December 7, 2004.

Law 15-354, the "Technical Amendments Act of 2004", was introduced in Council and assigned Bill No. 15-1130 which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 7, 2004, and December 21, 2004, respectively. Signed by the Mayor on February 9, 2005, it was assigned Act No. 15-770 and transmitted to both Houses of Congress for its review. D.C. Law 15-354 became effective on April 13, 2005.

Law 16-123, the "School Modernization Financing Act of 2006", was introduced in Council and assigned Bill No. 16-250 which was referred to the Committees on Education, Libraries, and Recreation and Revenue and Finance. The Bill was adopted on first and second readings on February 7, 2006, and March 7, 2006, respectively. Signed by the Mayor on March 30, 2006, it was assigned Act No. 16-341 and transmitted to both Houses of Congress for its review. D.C. Law 16- 123 became effective on June 8, 2006.

For Law 16-192, see notes following § 42-903.

Law 16-294, the "Second Technical Amendments Act of 2006", was introduced in Council and assigned Bill No. 16-996, which was referred to Committee on the Whole. The Bill was adopted on first and second readings on November 14, 2006, and December 5, 2006, respectively. Signed by the Mayor on December 28, 2006, it was assigned Act No. 16-653 and transmitted to both Houses of Congress for its review. D.C. Law 16-294 became effective on March 14, 2007.

Law 17-219, the "Fiscal Year 2009 Budget Support Act of 2008", was introduced in Council and assigned Bill No. 17-678, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 13, 2008, and June 3, 2008, respectively. Signed by the Mayor on June 26, 2008, it was assigned Act No. 17-419 and transmitted to both Houses of Congress for its review. D.C. Law 17-219 became effective on August 16, 2008.

Law 17-353, the "Technical Amendments Act of 2008", was introduced in Council and assigned Bill No. 17-994 which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 2, 2008, and December 16, 2008, respectively. Signed by the Mayor on January 15, 2009, it was assigned Act No. 17-687 and transmitted to both Houses of Congress for its review. D.C. Law 17-353 became effective on March 25, 2009.

For Law 18-111, see notes following § 42-1102.02.

For history of Law 19-168, see notes under § 42-1102.

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.

Miscellaneous Notes

Application of Law 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.

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

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 11-198: Section 1001 of D.C. Law 11-198 provides 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: 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.

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

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.

Section 401 of D.C. Law 16-123 provides:

"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.".

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".

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

Short title: Section 7121 of D.C. Law 19-168 provided that subtitle L of title VII of the act may be cited as "Recordation Tax on Refinances of Security Interest Instruments Clarification Amendment Act of 2012".