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B26-0150 • 2025

Residential Building Permit Classification Temporary Amendment Act of 2025

Residential Building Permit Classification Temporary Amendment Act of 2025

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Mendelson
Last action
2025-06-27
Official status
Official Law
Effective date
Not listed

Plain English Breakdown

The official source material did not provide specific details on the Chief Financial Officer's discretion regarding granting extensions or waiving penalties, which was removed from the candidate explanation.

Temporary Changes to Residential Building Permit Classification

This law temporarily amends the classification process for residential properties in the District of Columbia, including requirements for property owners to apply for changes and provisions for administrative review if denied.

What This Bill Does

  • Amends the definition of Class 1A Property to include real property with building permits issued for new or substantial rehabilitation for nontransient residential purposes.
  • Requires property owners to apply for classification changes to Class 1A Property before they become effective, providing necessary documentation.
  • Specifies that if a change in classification is incorrect and the property was not used predominantly for residential use within three years of permit issuance, it will be reclassified and taxed accordingly with penalties added.
  • Allows property owners to petition for administrative review and appeal decisions regarding denied or rescinded Class 1A Property classifications.

Who It Names or Affects

  • Owners of real property that are classified as residential under this act.
  • The District of Columbia's Chief Financial Officer and other relevant government officials.

Terms To Know

Class 1A Property
Residential real property improved for nontransient dwelling purposes or with permits to construct new improvements or rehabilitate existing ones for such use.
Chief Financial Officer
The official responsible for financial matters in the District of Columbia, including tax classification and assessment.

Limits and Unknowns

  • This act is temporary and will expire on January 28, 2026.
  • It does not specify how mixed-use classifications should be handled beyond the requirements set out for residential use.

Bill History

  1. 2025-06-27 Council of the District of Columbia LIMS

    Law L26-0015, Effective from Jun 17, 2025 Published in DC Register Vol 72 and Page 007299, Expires on Jan 28, 2026

  2. 2025-05-05 Council of the District of Columbia LIMS

    Transmitted to Congress

  3. 2025-05-02 Council of the District of Columbia LIMS

    Act A26-0066 Published in DC Register Vol 72 and Page 005339

  4. 2025-04-29 Council of the District of Columbia LIMS

    Returned from Mayor

  5. 2025-04-24 Council of the District of Columbia LIMS

    Signed by the Mayor and Enacted with Act Number A26-0066

  6. 2025-04-22 Council of the District of Columbia LIMS

    Transmitted to Mayor, Response Due on May 06, 2025

  7. 2025-04-01 Council of the District of Columbia LIMS

    Legislative Meeting

  8. 2025-03-07 Council of the District of Columbia LIMS

    Notice of Intent to Act on B26-0150 Published in the District of Columbia Register

  9. 2025-03-04 Council of the District of Columbia LIMS

    Retained by the Council

  10. 2025-03-04 Council of the District of Columbia LIMS

    Legislative Meeting

  11. 2025-03-03 Council of the District of Columbia LIMS

    B26-0150 Introduced by Chairman Mendelson at Office of the Secretary

Official Summary Text

Residential Building Permit Classification Temporary Amendment Act of 2025

Current Bill Text

Read the full stored bill text 
ENROLLED ORIGINAL
ANACT
D.C. ACT 26-66
INTHE COUNCIL OF THE DISTRICTOF COLUMBIA
APRIL 24, 2025
‘Toamend,onatemporarybasis,section47-813oftheDistrictofColumbiaOfficialCodetoprovideformoretimelyclassificationchangesforcommercialpropertiesthataretobeputtoresidentialuse,toprovideforanapplicationprocesstomakeclassificationchanges,toprovideforappealrightsifsuchapplicationisdenied,andtoprovideforaclawbackintheeventtherealpropertyisnottimelyputtoresidentialuse.

BE ITENACTED BY THE COUNCIL OF THE DISTRICTOF COLUMBIA, Thatthis
actmay be citedasthe“ResidentialBuildingPermitClassificationTemporaryAmendment Act
of2025”.
Sec.2.Section47-813oftheDistrictofColumbiaOfficialCodeisamendedtoreadasfollows:(a)Subsection(c-9)(2)isamendedasfollows:(2)Subparagraph(A)isamendedtoreadasfollows:“4(2\(A)Exceptasotherwiseprovidedinthisparagraphandsubjecttoparagraphs(4)and(5)ofthissubsection,Class1APropertyshallbecomprisedof:
“(i)Residentialrealpropertythatisimprovedanditslegaluseis
fornontransientresidentialdwellingpurposes,andthatisnotClass1BProperty;provided,that
suchpropertymaybeusedtohosttransientguestspursuanttoanunexpiredshort-termrental
licenseendorsementissuedpursuantto§30-201.04;or“@i)Realpropertyoraportionofrealpropertyforwhichabuildingpermithasbeenissued:“()Toconstructanewimprovementforpredominantlynontransientresidentialdwellingpurpose;or(II)Tosubstantiallyrehabilitatethatportionorallofanexistingimprovementforexclusivelynontransientresidentialdwellingpurposes.”.(2)Subparagraph(C)isamendedbystrikingthephrase“designatedas”and
insertingthephrase“designatedsolelyas”initsplace.

ENROLLED ORIGINAL
(b)The lead-inlanguageof subsection(d-2)isamended by strikingthephrase“Class3
PropertyorClass4Property,”andinsertingthephrase“Class2Property,Class3Property,or
Class4 Property,”initsplace.
(c)Anew subsection(d-3)isaddedtoreadasfollows:
“(d-3)(1)IfrealpropertychangesclassificationtoClass1APropertyasdefinedin
subsection(c-9)(2)(A)(ii)ofthissectionduringtheperiod:
“(A) October 1 throughMarch 31 of thetaxyear,thenewly reclassified
Class1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalready
improved or assessedunder § 47-829,shallbe taxedattheClass1A Propertytaxrateforthe
entiretaxyear;or
“(B)April1throughSeptember30ofthetaxyear,thenewlyreclassified
Class1AProperty,ortheportionthereofusedexclusivelyforresidentialpurposesifalready
improved or assessedunder § 47-829,shallbe taxedattheClass 1A Propertytaxrateforthe
secondinstallmentonly.
“(2)TheownershallapplyforachangeofclassificationtoClass1APropertyas
definedinsubsection(c-9)(2)(A)(ii)ofthissectionandshallpromptlyprovidecomplete
documentationina manner prescribedby theChief FinancialOfficertosubstantiateany such
classificationchangebeforeitshallbeeffective.
“(3)A change inclassificationtoClass1A Propertyas definedinsubsection(c-
9)(2)(A)(ii)ofthis sectionshallbe effectivebeginninginthehalftaxyear forwhich application
ismadeunderparagraph(2)ofthissubsection.
“(4)IfchangeinclassificationtoClass1APropertyasdefinedinsubsection(c-
9)(2)(A)(ii)ofthissectionisdeterminedtobeerroneousbecausetherealpropertywasnotputto
predominantlyresidentialuse by theearlierof eithertheissuanceof any new or amended
certificateofoccupancy(temporaryorpermanent)foranypartoftheimprovementthereon,or3
yearsfromissuanceofthebuildingpermit,orthebuildingpermitexpiredandwasnotrenewed
withinoneyear,theChiefFinancialOfficershalllreclassifyandtaxtherealpropertywithout
limitationforeachtaxyearorhalftaxyearinwhichtherealpropertywasimproperlyclassified
asClass1AProperty,subjectonlytosubsection(d-1)(5)(A-i)ofthissection,ifthepropertyis
determinedtobeClass3PropertyorClass4Property,orsubsection(d-2)ofthissection.Inthe
eventofsuchreclassification,penaltyandinterestshallbeaddedbeginningfromthedaythe
correctamountoftaxshouldhavebeenduebutnotpaidifthepropertyhadbeenproperly
classified.
“(5)Within45daysfromthedateofthenoticeofdenialofClass1AProperty
reclassificationunderthissubsection,theowner may petitionforan administrativereviewof the
rescissionordenialand appealfrom afinal determinationthereoftothesame extentasif the
appealwerefiledunder§47-825.01a(d)(2)..
“(6)Notwithstandingthetimelimitationsinparagraphs(4)and(5)ofthis
subsection,theChiefFinancialOfficer,inhisor herdiscretion,may grantan extensionof timeto
2

ENROLLED ORIGINAL
complyorwaivepenaltyandinterestassessedpursuanttoparagraph(4)ofthissubsectiontopreventanunduehardshiptotheowner.“(7)Theprovisionsofthissubsection,subsection(c-9)(2)(A)(ii)ofthissection,
and§47-829shallnotsupersedetherequirementtotimelyfileformixed-useclassificationfortheupcomingtaxyearpursuanttosubsection(f)ofthissection,whentheannualassessmentforsuchupcomingtaxyearismadeunder§47-824andthecertificateofoccupancy(finalor
temporary)wasissued.”.
Sec.3.Applicability.ThisactshallapplyasofApril1,2025.
Sec.4.Fiscalimpactstatement.
The CounciladoptsthefiscalimpactstatementoftheBudget Directorasthefiscalimpact
statementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approved
October 16,2006 (120 Stat.2038; D.C. OfficialCode § 1-301.47a).
Sec.5.Effectivedate.(a)ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto)anda30-dayperiodofcongressionalreviewasprovidedinsection602(c)(1)oftheDistrictofColumbiaHomeRuleAct,approved
December24,1973(87Stat.813;D.C.OfficialCode§ 1-206.02(c)(1)).(b)Thisactshallexpireafter225daysofitshavingtakeneffect.
lpi‘hairman
Councilof theDistrictof Columbia

District\ofColumbia
April 24,2025APPROVED

COUNCILOF THEDISTRICTOF COLUMBIA
WASHINGTON,DC,20004

[ ]ITEMON CONSENT CALENDAR:
[X] VOTE DATE March 4, 2025
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[X] VOTE DATE ‘April1,2025
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