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B26-0396 • 2025

Transfer and Recordation Tax Appeals Amendment Act of 2025

Transfer and Recordation Tax Appeals Amendment Act of 2025

Taxes
Enacted

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

Sponsor
at the request of the Mayor
Last action
2026-06-05
Official status
Under Congressional Review
Effective date
Not listed

Plain English Breakdown

The effective date depends on approval by the Mayor and a subsequent 30-day period of congressional review; no specific calendar date is provided in the text.

Transfer and Recordation Tax Appeals Amendment Act of 2026

This law allows people who buy or sell real estate in Washington, D.C., to challenge the fair market value used to calculate transfer taxes.

What This Bill Does

  • Allows buyers (transferees) and sellers (transferors) to ask for a review if they disagree with the Office of Tax and Revenue's estimate of a property's fair market value.
  • Creates a process to appeal these decisions first to the Real Property Tax Appeals Commission for the District of Columbia.
  • Permits further appeals from the commission directly to the Superior Court of the District of Columbia, provided specific conditions are met.
  • Updates existing laws to include 'fair market value' alongside standard tax assessments in appeal procedures.

Who It Names or Affects

  • People who sell real property or an interest in it (transferors).
  • People who buy real property or an interest in it (transferees).
  • The Office of Tax and Revenue.
  • The Real Property Tax Appeals Commission for the District of Columbia.

Terms To Know

Transferor
A person or entity that sells real property, as defined in D.C. Official Code §47-901(10).
Transferee
A person or entity that buys real property, as defined in D.C. Official Code §47-901(11).
Fair Market Value
The value of a property used to calculate taxes on the transfer of ownership.

Limits and Unknowns

  • Petitions for administrative review must be filed within 45 days after the tax is imposed.
  • Appeals to the Real Property Tax Appeals Commission regarding fair market value determinations must be filed within 45 days of receiving notice of final determination.
  • People generally must pay the full amount of the disputed transfer or recordation tax, plus any penalties and interest, before they can appeal to the Superior Court.

Bill History

  1. 2026-06-05 Council of the District of Columbia LIMS

    Act A26-0325 Published in DC Register Vol 73 and Page 008169

  2. 2026-06-04 Council of the District of Columbia LIMS

    Transmitted to Congress, Projected Law Date is Jul 18, 2026

  3. 2026-05-29 Council of the District of Columbia LIMS

    Returned from Mayor

  4. 2026-05-28 Council of the District of Columbia LIMS

    Signed by the Mayor and Enacted with Act Number A26-0325

  5. 2026-05-14 Council of the District of Columbia LIMS

    Transmitted to Mayor, Response Due on May 29, 2026

  6. 2026-05-05 Council of the District of Columbia LIMS

    Legislative Meeting

  7. 2026-03-31 Council of the District of Columbia LIMS

    Committee Mark-up of B26-0396 by the Committee of the Whole

  8. 2026-03-31 Council of the District of Columbia LIMS

    Legislative Meeting

  9. 2026-01-09 Council of the District of Columbia LIMS

    Re-Referral published.

  10. 2026-01-06 Council of the District of Columbia LIMS

    Re-Referred to Committee of the Whole

  11. 2025-11-19 Council of the District of Columbia LIMS

    Public Hearing on B26-0396 View Public Hearing Record

  12. 2025-10-31 Council of the District of Columbia LIMS

    Notice of Public Hearing Published in the District of Columbia Register

  13. 2025-10-29 Council of the District of Columbia LIMS

    Notice of Public Hearing filed in the Office of Secretary by Business and Economic Development

  14. 2025-10-10 Council of the District of Columbia LIMS

    Notice of Intent to Act on B26-0396 Published in the District of Columbia Register

  15. 2025-10-07 Council of the District of Columbia LIMS

    Referred to Committee on Business and Economic Development

  16. 2025-10-03 Council of the District of Columbia LIMS

    B26-0396 Introduced by Chairman Mendelson at Office of the Secretary

Official Summary Text

Transfer and Recordation Tax Appeals Amendment Act of 2025

Current Bill Text

Read the full stored bill text 
ENROLLED ORIGINAL
AN ACT
D.C. ACT 26-325
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA,
MAY 28, 2026
ToamendtheDistrictofColumbiaRealEstateDeedRecordationTaxActtoauthorizetransferorsortransfereesofrealpropertytopetitionforreviewofthefairmarketvalueusedincalculatingtaxesimposedonthetransferoftheproperty;andtoamendTitle47oftheDistrictofColumbiaOfficialCodetoallowtransferorsortransfereesofrealpropertytoappealfinaldeterminationsofa realproperty'sfairmarketvalvetotheRealProperty‘TaxAppealsCommissionfortheDistrictofColumbiaandthentotheSuperiorCourtoftheDistrictofColumbia,providedunderthelaw.
BEITENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
actmay be citedas the“Transferand RecordationTax Appeals Amendment Act of 2026”.
Sec.2.Section304oftheDistrictofColumbiaRealEstateDeedRecordationTaxAct,approvedMarch2,1962(76Stat.12;D.C.OfficialCode§42-1104),isamendedbyaddinganewsubsection(d)toreadasfollows:“(@)(1)Thetransferorortransfereeofrealpropertyoraneconomicinterestinrealpropertymay,pursuanttoD.C.OfficialCode§47-825.01a(d),fileapetitionforreviewofthedeterminationoffairmarketvaluemadeundersubsection(c)ofthissectionorundersection303(a).ThenoticeoffinaldeterminationissuedbytheOfficeofTaxandRevenueonthepetitionforreviewmaybeappealedtotheRealPropertyTaxAppealsCommissionfortheDistrictofColumbiaasprovidedinD.C.OfficialCode§47-825.01a(e).
(2)Atransferorortransfereeaggrievedbyafairmarketvaluedeterminationundersubsection(¢)ofthissectionorundersection303(a)mayappealthedeterminationtotheSuperiorCourtasprovidedinD.C.OfficialCode§47-825.01a(g).
(3)Forthepurposesofthissubsection,theterms“transferor”and“transferee”shallhavethesamemeaningasprovidedinD.C.OfficialCode§47-901(10)and(11),respectively.”.
Sec.3.Title47oftheDistrictofColumbiaOfficialCodeisamendedasfollows:(a)Section47-825.01aisamendedasfollows:
(1)Subsection(¢)(4)isamendedasfollows:
1
ENROLLED ORIGINAL
(A)Subparagraph(A)isamendedbystrikingthephrase“assessmentandclassification”andinsertingthephrase“assessmentandclassificationot,asappropriate,fairmarketvalue”initsplace,
(B)Subparagraph(B)isamendedbystrikingthephrase“assessmentandclassification”andinsertingthephrase“assessmentandclassificationot,asappropriate,fairmarketvalue”initsplace,
(C)Subparagraph(C)isamendedasfollows:(i)Striketheword “member” and inserttheword “members” initsplace.
(ii)Strikethephrase“or both,”and insertthephrase“orboth,orfairmarketvalue,”initsplace,(2)Subsection(d)isamended asfollows:
(A)A newparagraph(2A)isaddedtoreadasfollows:“(2A)Withrespecttoanappealofa determinationofthefairmarketvalueofrealpropertymadepursuantto§42-1103(a),42-1104(c),or47-903(a)(1)(B),thetransferorortransfereemay petitionOTR foran administrativereviewofthefairmarket valuedeterminationwithin45 days afterthetransfertaxassociatedwiththefairmarket valuedeterminationisimposed.”,
(B)Paragraph(3)isamendedbystrikingthephrase“aproposedassessedvalueorclassification”and insertingthephrase“aproposedassessedvalue,classification,orfairmarketvaluedetermination”initsplace.
(C)Paragraph(4)isamendedbystrikingthephrase“thevalueorclassificationoftherealpropertyforthetaxyearatissue”andinsertingthephrase“theassessedvalueorclassificationoftherealpropertyforthetaxyearatissueor tothefairmarket valueforthetransferatissue”initsplace.
(3)Subsection(c)isamended asfollows;
(A)Paragraph(1)isamendedasfollows:@ Subparagraph(A)isamendedbystrikingthephrase“noticeoffinaldeterminationonapetitionforadministrativereview,the”and insertingthephrase“noticeoffinaldeterminationonapetitionforadministrativereviewregardinganassessedvalueotclassification,the”initsplace.
(ii)A newsubparagraph(C)isaddedtoreadasfollows:“(C)Ifatransferorortransfereeisaggrievedbyanoticeoffinaldeterminationregardingafairmarketvaluedetermination,thetransferorortransfereemayfilean appealfrom thedeterminationoffair market valuewithin45 days afterthedateofthe noticeoffinaldetermination.Thetransferorortransfereemaysupplementtheoriginalfilingifnewinformationhas become availablethatwas notavailablepriortothefilingdeadlineby deliveringacopyofthesupplementalfilingtotheCommissionandOTR nolaterthan20daysafterthefilingoftheappeal.”.
ENROLLED ORIGINAL
(B)Paragraph(4)(A)isamendedbyaddinganewsub-subparagraph(ii-1)
toreadas follows:
“(ii-T)A determinationof fairmarket value;”
(C) Paragraph(5)isamended as follows:
(i)Theexistingtextisdesignatedassubparagraph(A).
(ii)A newsubparagraph(B)isaddedtoreadasfollows:
“(B)TheCommissionshallnotifyOTR ofanydecisiononanappealftom
adeterminationoffairmarketvalueatthesametimethattheCommissionnotifiesthetransferor
ortransferee.”.
(D)Paragraph(6)isamendedasfollows:
(i)Subparagraph(A)isamendedbystrikingthephrase“OTRor
anowneraggrievedbyaproposedassessedvalueorclassificationmayseckarehearingbefore
theCommission.”andinsertingthephrase“OTR,anowneraggrievedbyaproposedassessed
valueorclassification,oratransferorortransfereeaggrievedbyadeterminationoffairmarket
value,mayseekarehearingbeforetheCommission.”initsplace.
Gi)Subparagraph(B)isamendedbystrikingthephrase“owneror
OTR”andinsertingthephrase“owner,transferor,transferee,orOTR”initsplace.
(ii)Subparagraph(D)isamendedbystrikingthephrase“changes
theproposedassessedvalue”andinsertingthephrase“changestheproposedassessedvalueor
determinedfairmarket value”initsplace,
(4)Subsection(g)isamendedbyaddinganewparagraph(3)toreadasfollows:
*(3)A wansferorortransfereeaggrievedbyadeterminationoffairmarketvalue
mayappealthedeterminationtotheSuperiorCourtoftheDistrictofColumbiainthesame
manner and tothesame extentas providedin §§ 47-3303 and 47-3304 within45 days afterthe
finalfairmarket valuedeterminationisissuedby theCommission; provided,thatthetransfertax
or recordationtaxassociatedwith thedeterminationof fairmarket valuebeingappealedby the
transferorortransfereeshallfirsthave been paidto theD.C. Treasurertogetherwithany
penaltiesand interestdue thereon;providedfurther,thatthetransferorortransfereeshallhave in
goodfaithfirstappealedthedeterminationtotheCommissionimmediatelyprecedingtheappeal
totheSuperiorCourt of theDistrictof Columbia.”.
(b)Section47-904 isamended as follows:
(1)The existingtextisdesignatedas subsection(a).
(2)A new subsection(b)isadded toreadas follows;
“(b)(1)Thetransferorortransfereeofrealproperty,oraninteresttherein,may,pursuant
to § 47-825.01a(d),filea petitionforreviewof thedeterminationof fair market valueunder
subsection(a)of thissection.The noticeof finaldeterminationissuedby theOfficeof Tax and
RevenueonthepetitionforreviewmaybeappealedtotheRealPropertyTaxAppeals
Commission fortheDistrictof Columbia as providedin § 47-825.01a(e).
ENROLLED ORIGINAL
“(2)A transferorortransfereeaggrievedbyafairmarketvaluedeterminationundersubsection(a)ofthissectionmayappealthedeterminationtotheSuperiorCourtas
providedin§47-825.01a(g).”.
Sec.4.Fiscalimpactstatement.
‘TheCounciladoptsthefiscalimpactstatementinthecommitteereportasthefiscalimpactstatementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approvedOctober16,2006(120Stat.2038;D.C.OfficialCode§1-301.47a).
See.5.Effectivedate.ThisactshalltakeeffectafterapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCounciltooverridetheveto)anda30-dayperiodofcongressionalreviewasprovidedinsection602(c)(1)oftheDistrictofColumbiaHomeRuleAct,approvedDecember
24,1973(87Stat.813;D.C.OfficialCode§1-206.02(¢)(1)).
airman
Councilof theDistrictof Columbia

APPROVED
MAY 28, 2026

DocketNo,820-0396
[X]ITEMONCONSENTCALENDAR,
COUNCILOF THEDISTRICTOF COLUMBIA
WASHINGTON,DC,20004

[DGACTION FirstReading,CC
[x]VOTEDATE March31,2026
[x]VOICEvoTE Approved
RECORDEDVOTEONREQUEST
ABSENT
[]ROLLCALLVOTE-Result
CouncilMember je|NayNV [AB[Reo]CouncitMember|Aye[Nay|nv [8 |Rec|CounclMembar|Aye|Nay|NV_|AB_|Reo
‘ChalrmanMendelson)X Frumin x Pinto
Allen x Henderson x R.White
Bonds x LewisGeorge| X T.white
Crawford x Nadeau x
Felder x Parker x
X-IndicateVote AB Absent NV.+Present,NotVoting Rec Recused
CERTIFICATIONRECORD
E38 totheCounal
DocketNo.B26-0396
[DX]ITEMONCONSENTCALENDAR,
S72 Date

UXTACTION FinalReading,CC
DX]VOTEDATE May8,2026
[XIVOICEvoTE ‘Approved
RECORDEDVOTEONREQUEST
ABSENT
[TROLLCALLVOTE-Result
CouncilMember.(Aye[Nay|NV.[AB[Rec|CouncMember[Aye|Nay|NV[AB[Rec|CouncMember[Aye[Nay[nvAB [Ree
ChairmanMendelson)X Frumin x Pinto
Allen x Henderson x R.White
Bonds x LewisGeorge__|x T.Wnite
Crawford x Nadeau x
Folder x Parkor x
X-InlicateVote AB ~Absent : NV-Present,NotVoting Rec-Recused
eS a :
CERTIFICATIONRECORD
S* D2Date