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ENROLLED ORIGINAL
AN ACT
ACT 26-33
INTHE COUNCIL OF THE DISTRICTOF COLUMBIA
MARCH 21, 2025
‘Toamend,onanemergencybasis,section47-813oftheDistrictofColumbiaOfficialCodeto
provideformoretimelyclassificationchangesforcommercialpropertiesthataretobe
puttoresidentialuse,toprovideforanapplicationprocesstomakeclassification
changes,o provideforappealrightsifsuchapplicationisdenied,andtoprovidefora
clawbackintheeventtherealpropertyisnottimelyputtoresidentialuse.
BE ITENACTED BY THE COUNCIL OF THE DISTRICTOF COLUMBIA,Thatthis
actmaybecitedasthe“ResidentialBuildingPermitClassificationEmergencyAmendmentAct,
of2025”.
Sec.2.Section47-813oftheDistrictofColumbiaOfficialCodeisamendedtoreadas
follows:(a)Subsection(c-9)(2)isamendedasfollows:(1)Subparagraph(A)isamendedtoreadasfollows:*(2)(A)Exceptasotherwiseprovidedinthisparagraphandsubjecttoparagraphs(4)and(5)ofthissubsection,Class1 Propertyshallbecomprisedof:“(iResidentialrealpropertythatisimprovedanditslegaluseis,
fornontransientresidentialdwellingpurposes,andthatisnotClass1BProperty;provided,that
suchpropertymaybeusedtohosttransientguestspursuanttoanunexpiredshort-termrental
licenseendorsementissuedpursuantto§30-201.04;or“(ji)Realpropertyoraportionofrealpropertyforwhichabuildingpermithasbeenissued:“(1)Toconstructanewimprovementforpredominantly
nontransientresidentialdwellingpurpose;or
“(I1)To substantiallyrehabilitatethatportionor allof an
existingimprovementforexclusivelynontransientresidentialdwellingpurposes.”(2)Subparagraph(C)isamendedbystrikingthephrase“designatedas”andinsertingthephrase“designatedsolelyas”initsplace.
ENROLLED ORIGINAL,
(b)Thelead-inlanguageofsubsection(d-2)isamendedbystrikingthephrase“Class3
PropertyorClass4Property,”andinsertingthephrase“Class2Property,Class3Property,or
Class4Property,”initsplace.
(c)Anew subsection(d-3)isaddedtoreadasfollows:
“(d-3)(1)IfrealpropertychangesclassificationtoClass1APropertyasdefinedin
subsection(c-9)(2)(A)(ii)duringtheperiod:
“(A) October | throughMarch 31of the taxyear,thenewly reclassified
Class1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalready
improvedorassessedunder§47-829,shallbetaxedattheClass1APropertytaxratefortheentiretaxyear;or
“(B)April1throughSeptember30ofthetaxyear,thenewlyreclassified
Class1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalready
improved or assessedunder § 47-829,shallbe taxedattheClass1A Propertytaxrateforthe
secondinstallmentonly.
“(2)TheownershallapplyforachangeofclassificationtoClass1APropertyas
definedinsubsection(c-9)(2)(A)(ii)ofthissectionandshallpromptlyprovidecomplete
documentationina manner prescribedby theChiefFinancialOfficertosubstantiateany such
classificationchange beforeitshallbe effective.
“(3)A change inclassificationtoClass 1A Propertyas definedinsubsection(c-
9)(2)(A)(ii)ofthissectionshallbeeffectivebeginninginthehalftaxyearforwhichapplication
ismadeunderparagraph(2)ofthissubsection.
“(4)IfchangeinclassificationtoClass1APropertyasdefinedinsubsection(c-
9)(2\(A)(ii)ofthissectionisdeterminedtobeerroneousbecausetherealpropertywasnotputto
predominantlyresidentialusebytheearlierofeithertheissuanceof anyneworamended
certificateofoccupancy(temporaryorpermanent)foranypartoftheimprovementthereon,or3
yearsfrom issuanceof thebuildingpermit,orthebuildingpermitexpiredand was not renewed
withinone year,theChief FinancialOfficershallreclassifyand taxtherealpropertywithout
limitationforeachtaxyearorhalftaxyearinwhichtherealpropertywasimproperlyclassified
as Class1A Property,subjectonlytosubsection(d-1)(5)(A-i)of thissection,ifthe propertyis
determinedtobeClass3PropertyorClass4Property,orsubsection(d-2)ofthissection,Inthe
eventofsuchreclassification,penaltyandinterestshallbeaddedbeginningfromthedaythe
correctamountoftaxshouldhavebeenduebutnotpaidifthepropertyhadbeenproperly
classified.
“(5)Within 45 days from thedateof thenoticeof denialof Class1A Property
reclassificationunder thissubsection,theowner may petitionforan administrativereviewof the
rescissionor denialand appealfrom afinal determinationthereofto thesame extentas ifthe
appealwerefiledunder§47-825.01a(d)(2).
“(6)Notwithstandingthetimelimitationsinparagraphs(4)and(5)ofthis
subsection,theChiefFinancialOfficer,inhisor herdiscretion,may grantan extensionof time to
ENROLLED ORIGINAL,
complyorwaivepenaltyandinterestassessedpursuanttoparagraph(4)ofthissubsectiontopreventanunduehardshiptotheowner.“(7)Theprovisionsofthissubsection,subsection(c-9)(2)(A)(ii)ofthissection,and§47-829shallnotsupersedetherequirementtotimelyfileformixed-useclassificationfortheupcomingtaxyearpursuanttosubsection(f)ofthissection,whentheannualassessmentforsuchupcomingtaxyearismadeunder§47-824andthecertificateofoccupancy(finalortemporary)wasissued.”.
Sec.3.Applicability.ThisactshallapplyasofApril1,2025.
Sec.4,Fiscalimpactstatement.TheCounciladoptsthefiscalimpactstatementoftheBudgetDirectorasthefiscalimpactstatementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approvedOctober16,2006(120Stat,2038;D.C.OfficialCode§1-301.47a).
Sec.5.Effectivedate.ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto),andshallremainineffectfornolongerthan90days,asprovidedforemergencyactsoftheCouneiloftheDistrictofColumbiainsection412(a)oftheDistrictofColumbiaHomeRuleAct,approvedDecember24,1973(87Stat.788;D.C.OfficialCode§1-204.12(a)).
Jl‘Chairman
Councilof the Districtof Columbia
APPROVEDMARCH 21, 2025
[]ITEMONCONSENTCALENDAR
[DDGACTION
DX]VOTEDATE
[X1VOIcEvoTE
RECORDEDVOTEONREQUEST
ABSENT
[ROLLCALLVOTE-Resutt
COUNCILOF THE DISTRICTOF COLUMBIA
WASHINGTON,DC,20004
FinalReading
‘March4,2025
Approved
CouncitMember__|Aye[Nay|NV_|AB[Rec|CouncitMember[Aye|Nay|NV[AB|Rec|CounciiMember[Aye|Nay|NV[AB[Rec
ChairmanMendelson)x Henderson x Pinto
Allen x LewisGeorge_| X R White
Bonds x McDuttio x
Felder x Nadeau x
Frumin x Parker x
X-IndicateVote AB ~Absent NV--Present,NotVoting Rec-Recused
CERTIFICATIONRECORD
‘SecretarytotheColne”