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AN ACT
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To amend the District of Columbia Real Estate Deed Recordation Tax Act to authorize
transferors or transferees of real property to petition for review of the fair market value
used in calculating taxes imposed on the transfer of the property; and to amend Title 47 of
the District of Columbia Official Code to allow transferors or transferees of real property
to appeal final determinations of a real property's fair market value to the Real Property
Tax Appeals Commission for the District of Columbia and then to the Superior Court of
the District of Columbia, provided under the law.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “Transfer and Recordation Tax Appeals Amendment Act of 2026”.
Sec. 2. Section 304 of the District of Columbia Real Estate Deed Recordation Tax Act,
approved March 2, 1962 (76 Stat. 12; D.C. Official Code § 42-1104), is amended by adding a
new subsection (d) to read as follows:
“(d)(1) The transferor or transferee of real property or an economic interest in real
property may, pursuant to D.C. Official Code § 47-825.01a(d), file a petition for review of the
determination of fair market value made under subsection (c) of this section or under section
303(a). The notice of final determination issued by the Office of Tax and Revenue on the petition
for review may be appealed to the Real Property Tax Appeals Commission for the District of
Columbia as provided in D.C. Official Code § 47-825.01a(e).
“(2) A transferor or transferee aggrieved by a fair market value determination
under subsection (c) of this section or under section 303(a) may appeal the determination to the
Superior Court as provided in D.C. Official Code § 47-825.01a(g).
“(3) For the purposes of this subsection, the terms “transferor” and “transferee”
shall have the same meaning as provided in D.C. Official Code § 47-901(10) and (11),
respectively.”.
Sec. 3. Title 47 of the District of Columbia Official Code is amended as follows:
(a) Section 47-825.01a is amended as follows:
(1) Subsection (c)(4) is amended as follows:
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(A) Subparagraph (A) is amended by striking the phrase “assessment and
classification” and inserting the phrase “assessment and classification or, as appropriate, fair
market value” in its place.
(B) Subparagraph (B) is amended by striking the phrase “assessment and
classification” and inserting the phrase “assessment and classification or, as appropriate, fair
market value” in its place.
(C) Subparagraph (C) is amended as follows:
(i) Strike the word “member” and insert the word “members” in its
place.
(ii) Strike the phrase “or both,” and insert the phrase “or both, or
fair market value,” in its place.
(2) Subsection (d) is amended as follows:
(A) A new paragraph (2A) is added to read as follows:
“(2A) With respect to an appeal of a determination of the fair market value of real
property made pursuant to § 42-1103(a), 42-1104(c), or 47-903(a)(1)(B), the transferor or
transferee may petition OTR for an administrative review of the fair market value determination
within 45 days after the transfer tax associated with the fair market value determination is
imposed.”.
(B) Paragraph (3) is amended by striking the phrase “a proposed assessed
value or classification” and inserting the phrase “a proposed assessed value, classification, or fair
market value determination” in its place.
(C) Paragraph (4) is amended by striking the phrase “the value or
classification of the real property for the tax year at issue” and inserting the phrase “the assessed
value or classification of the real property for the tax year at issue or to the fair market value for
the transfer at issue” in its place.
(3) Subsection (e) is amended as follows:
(A) Paragraph (1) is amended as follows:
(i) Subparagraph (A) is amended by striking the phrase “notice of
final determination on a petition for administrative review, the” and inserting the phrase “notice
of final determination on a petition for administrative review regarding an assessed value or
classification, the” in its place.
(ii) A new subparagraph (C) is added to read as follows:
“(C) If a transferor or transferee is aggrieved by a notice of final
determination regarding a fair market value determination, the transferor or transferee may file
an appeal from the determination of fair market value within 45 days after the date of the notice
of final determination. The transferor or transferee may supplement the original filing if new
information has become available that was not available prior to the filing deadline by delivering
a copy of the supplemental filing to the Commission and OTR no later than 20 days after the
filing of the appeal.”.
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(B) Paragraph (4)(A) is amended by adding a new sub-subparagraph (ii-I)
to read as follows:
“(ii-I) A determination of fair market value;”
(C) Paragraph (5) is amended as follows:
(i) The existing text is designated as subparagraph (A).
(ii) A new subparagraph (B) is added to read as follows:
“(B) The Commission shall notify OTR of any decision on an appeal from
a determination of fair market value at the same time that the Commission notifies the transferor
or transferee.”.
(D) Paragraph (6) is amended as follows:
(i) Subparagraph (A) is amended by striking the phrase “OTR or
an owner aggrieved by a proposed assessed value or classification may seek a rehearing before
the Commission.” and inserting the phrase “OTR, an owner aggrieved by a proposed assessed
value or classification, or a transferor or transferee aggrieved by a determination of fair market
value, may seek a rehearing before the Commission.” in its place.
(ii) Subparagraph (B) is amended by striking the phrase “owner or
OTR” and inserting the phrase “owner, transferor, transferee, or OTR” in its place.
(iii) Subparagraph (D) is amended by striking the phrase “changes
the proposed assessed value” and inserting the phrase “changes the proposed assessed value or
determined fair market value” in its place.
(4) Subsection (g) is amended by adding a new paragraph (3) to read as follows:
“(3) A transferor or transferee aggrieved by a determination of fair market value
may appeal the determination to the Superior Court of the District of Columbia in the same
manner and to the same extent as provided in §§ 47-3303 and 47-3304 within 45 days after the
final fair market value determination is issued by the Commission; provided, that the transfer tax
or recordation tax associated with the determination of fair market value being appealed by the
transferor or transferee shall first have been paid to the D.C. Treasurer together with any
penalties and interest due thereon; provided further, that the transferor or transferee shall have in
good faith first appealed the determination to the Commission immediately preceding the appeal
to the Superior Court of the District of Columbia.”.
(b) Section 47-904 is amended as follows:
(1) The existing text is designated as subsection (a).
(2) A new subsection (b) is added to read as follows:
“(b)(1) The transferor or transferee of real property, or an interest therein, may, pursuant
to § 47-825.01a(d), file a petition for review of the determination of fair market value under
subsection (a) of this section. The notice of final determination issued by the Office of Tax and
Revenue on the petition for review may be appealed to the Real Property Tax Appeals
Commission for the District of Columbia as provided in § 47-825.01a(e).
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“(2) A transferor or transferee aggrieved by a fair market value determination
under subsection (a) of this section may appeal the determination to the Superior Court as
provided in § 47-825.01a(g).”.
Sec. 4. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as the fiscal
impact statement required by section 4a of the General Legislative Procedures Act of 1975,
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
Sec. 5. Effective date.
This act shall take effect after approval by the Mayor (or in the event of veto by the
Mayor, action by the Council to override the veto) and a 30-day period of congressional review
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).
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Chairman
Council of the District of Columbia
_________________________________
Mayor
District of Columbia