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Current through October 23, 2012
(a) For purposes of this section, the term "exempt purpose", as applied to a lessee or user, shall mean an exempt purpose with specified use, operation, and other restrictions as set forth in § 47-1002(4) through (20).
(b) If real property (or a portion thereof), which is exempt or immune from real property taxation under § 47-1002(1) through (3) or the law of the United States or the District of Columbia, is leased, loaned, or otherwise made available to any person in connection with a business or as a residence, or both, and the use is not for an exempt or immune purpose and the person is not exempt or immune from income taxation under the law of the United States or District of Columbia, the leasehold interest, possessory interest, beneficial interest, or beneficial use of the lessee or user of the real property shall be assessed and taxed. The Mayor shall determine the assessed value of the interest or use in accordance with § 47-820(a)(3) as if the lessee or user of the real property were the owner of the real property and the real property were not exempt or immune from taxation; provided, that the taxable value may be adjusted by the Mayor to reflect the duration of the interest or use remaining; provided further, that the Mayor may impute a duration of the interest or use based upon the intent, actions, and policies of the parties to the conveyance, the history of the real property, the perception of third parties, and written documents.
(c) This section shall not apply if:
(1) A payment is made in lieu of taxes in an amount equivalent to the tax which would be lawfully assessed if the real property were not exempt or immune from real property taxation;
(2) The application of this section would cause the District of Columbia to breach a pre-existing agreement or other legal obligation;
(3) The person liable for the tax under this section is subject to taxation under § 47-2002.04 and has paid the tax; or
(4) The real property is subject to taxation under § 47-1005.
(c-1) [Not funded]
(d) The provisions of § 47-831 shall apply in the case where a leasehold interest, possessory interest, beneficial interest, or beneficial use has escaped or been omitted from assessment and taxation, or the assessment has been made void.
(e) The lessee or user shall be subject to the same application process, filing requirements for reports and income and expense statements, taxes, and penalties as an institution, organization, corporation, or association under § 47-1007.
(f)(1) A notice of proposed assessed value shall be mailed to the lessee or user in the same manner and as required under Chapter 8 for a notice of proposed assessed value to an owner of real property.
(2) A lessee or user may appeal from a notice of proposed assessed value and real property classification in the same manner and under the same conditions as an owner under § 47-825.01.
(3) Tax assessed under this section shall be a personal liability of a lessee or user of real property and billed to the lessee or user. Payments of tax shall be applied in the same manner as payments of real property tax. The tax due under this section shall not give rise to a lien against the real property. If the tax is not paid within the time prescribed for payment of real property tax, there shall be added to the tax a penalty of 10% of the unpaid amount, plus interest on the unpaid amount at the rate of 1.5% per month (or portion of a month) until the tax is paid. The amount of the unpaid tax, plus penalty and interest due, shall constitute a delinquent tax to be collected in accordance with Chapter 44 of this title.
(g)(1) The Mayor may assign assessment and taxation squares and lots, or implement such other designation system, to identify a parcel or (portion thereof) for which the corresponding leasehold interest, possessory interest, beneficial interest, or beneficial use of the lessee or user of the real property may be subject to taxation and assessed to the lessee or user in accordance with this section.
(2) A person subject to tax under this section shall provide to the Mayor a District of Columbia Business Tax Identification Number and other tax identification number which the Mayor may require.
(June 9, 2001, D.C. Law 13-305, § 502(w), 48 DCR 334; Apr. 4, 2003, D.C. Law 14-282, § 11(u), 50 DCR 896; Dec. 3, 2010, D.C. Law 18-260, § 2, 57 DCR 9632.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 14-282 rewrote subsec. (b) and (d); and added subsec. (h). Prior to amendment, subsecs. (b) and (d) had read as follows:
"(b) If real property (or a portion thereof), which is exempt or immune from real property taxation under § 47-1002(1) through (3) or the law of the United States, is leased, loaned, or otherwise made available to any person in connection with a business or as a residence, or both, and the use is not for an exempt purpose and the person is not exempt or immune from income taxation under the laws of the United States or District of Columbia, the leasehold interest, possessory interest, beneficial interest, or beneficial use of the lessee or user of the real property shall be assessed and taxed:
"(1) On the portion of the real property leased, used, or made available for the nonexempt purpose; and
"(2) For the percentage of time during the real property tax year that the lease, use, or availability for the nonexempt purpose can be segregated and identified."
"(d) The taxable value of a leasehold interest, possessory interest, beneficial interest, or beneficial use for the purpose of this section shall be determined in the same manner as the taxable value of the real property would otherwise be determined if the lessee or user of the real property were the owner of the real property and the real property were not exempt from taxation; provided, that the taxable value determined shall be reduced by a percentage of the taxable value that is equal to the:
"(1) Percentage of the real property that is not actually leased or used by, or made available to, the lessee or user during the real property tax year; and
"(2) Percentage of time that the real property is not actually leased or used by, or made available to, the lessee or user during the real property tax year."
D.C. Law 18-260 added subsec. (c-1).
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 12(w) of Tax Clarity and Recorder of Deeds Temporary Act of 2002 (D.C. Law 14-191, October 5, 2002, law notification 49 DCR 9549).
For temporary (225 day) amendment of section, see § 12(w) of Tax Clarity and Related Amendments Temporary Act of 2003 (D.C. Law 14-228, March 23, 2003, law notification 50 DCR 2741).
Temporary Addition of Section
For temporary (225 day) addition of section, see § 2(u) of 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).
Emergency Act Amendments
For temporary (90 day) amendment of section, see §§ 2 and 12(w) 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 §§ 2 and 12(w) 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 §§ 2 and 12(w) of Tax Clarity and Related Amendments Congressional Review Emergency Act of 2002 (D.C. Act 14- 510, October 23, 2002, 49 DCR 10247).
Legislative History of Laws
For Law 13-305, see notes under § 47-901.
For Law 14-282, see notes following § 47-902.
Law 18-260, the "Land Acquisition for Housing Development Opportunities Program Act of 2010", was introduced in Council and assigned Bill No. 18-602, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on June 15, 2010, and September 21, 2010, respectively. Signed by the Mayor on October 5, 2010, it was assigned Act No. 18-544 and transmitted to both Houses of Congress for its review. D.C. Law 18- 260 became effective on December 3, 2010.
Miscellaneous Notes
Section 509 of D.C. Law 13-305 requires that section 502(w) of D.C. Law 13-305, amending this section, shall apply for tax years beginning after September 30, 2001. Section 2 of D.C. Law 14-282 requires that section 502(w) of D.C. Law 13-305, amending this section, shall apply for tax years beginning after September 30, 2003.
Section 3 of D.C. Law 18-260 provides:
"Sec. 3. Applicability.
"This act shall apply upon the inclusion of its fiscal effect in an approved budget and financial plan."
The Budget Director of the Council of the District of Columbia has determined, as of February 15, 2012, that the fiscal effect of Law 18-260 has not been included in an approved budget and financial plan. Therefore, the provisions of this section, enacted by Law 18-260, are not in effect.
