DC Increases Property Tax Rates

The District of Columbia changes the property tax rates for commercial and industrial real property, known as Class 2 properties, under emergency legislation. The legislation contains a new rate schedule for Class 2 properties. The rates will apply as of October 1, 2018.

Property Taxes on Commercial and Industrial Property

As part of emergency legislation for funding the arts, the D.C. Council has changed the tax rate schedule for commercial and industrial real estate. The new rates apply to the sum of both real property tax rates and special real property tax rates. Applicable October 1, 2018, the property tax rates will be:

– $1.65 for each $100 of assessed value if the real property’s assessed value is not greater than $5 million;

– $1.77 for each $ 100 of assessed value if the real property’s assessed value is greater than $5,000,000 but not greater than $10 million; or

– $1.89 for each $ 100 of assessed value if the real property’s assessed value is greater than $10 million.

The legislation also makes increases to sales tax rates.

Act 22-458 (D.C.B. 22-922), Laws 2018, effective October 3, 2018, for a 30-day period that expires December 31, 2018

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