Bill > B26-0149

This bill amends the District of Columbia's property tax classification rules to streamline and clarify the process for converting commercial properties to residential use. Specifically, it introduces a new mechanism for property owners to apply for Class 1A Property status (a residential property tax classification) when they obtain a building permit to construct or substantially rehabilitate a property for residential purposes. The bill establishes that if a property changes to Class 1A classification between October 1 and March 31, it will be taxed at the residential rate for the entire tax year; if the change occurs between April 1 and September 30, it will be taxed at the residential rate only for the second installment. Property owners must apply for the classification change and provide documentation to the Chief Financial Officer. If the property is not put to residential use within three years of the building permit's issuance or if the permit expires, the property will be reclassified and retroactively taxed, with potential penalties and interest. The bill also provides owners with the right to petition for an administrative review if their classification change is denied and allows the Chief Financial Officer discretion to grant extensions or waive penalties in cases of undue hardship. The act will apply as of April 1, 2025, and is designed as an emergency measure effective for 90 days.

https://lims.dccouncil.gov/Legislation/B26-0149