This tax is expressed as a dollar amount per $100 of assessed value. The rates are established by the Council of the District of Columbia and may change from year to year.
WHAT IS BLIGHTED PROPERTY? DC Official Code 42-3131.05(1) Definition of blighted property.
WHAT IS A VACANT BUILDING? DC Official Code 42-3131.05(5) Definition of vacant building. The District allows for exceptions that may allow a vacant property to receive the lower Class 1 or Class 2 tax rate, provided that certain conditions are met. For information regarding exceptions related to vacant property, vacant property owners may contact the Department of Consumer and Regulatory Affairs (DCRA) at (202) 442-4332 or 311, or via email. DCRA encourages vacant property owners to also view the following link: Frequently Asked Questions - Vacant and Blighted Property.
VACANT AND BLIGHTED PROPERTY IDENTIFICATION: DCRA and the Office of Tax and Revenue (OTR) share responsibility for the identification and processing of vacant properties.
DCRA - Vacant and Blighted Property Enforcement (VBE): The VBE unit is responsible for investigating and classifying vacant and blighted property. It also maintains a list of all vacant and blighted buildings within the District of Columbia and certifies the list to OTR.
OTR - Taxation of Vacant and Blighted Property: OTR changes the classification for the properties on the tax roll to the correct status for the appropriate real property tax year.
The Office of Tax and Revenue (OTR) recently announced that it has begun to mail Tax Year (TY) 2020 assessment notices to all real property owners in the District of Columbia. The District’s real estate market remains steady as the proposed TY 2020 assessment average increase in residential properties (Class 1) was 4.23 percent, up from last year’s 3.33 percent. The commercial (Class 2) market also shows value increases of 2.42 percent, down from last year’s 3.29 percent. The TY 2020 real property assessment notice contains the proposed assessed value for a property as well as the estimated taxable assessment. In addition, included on the notice is the assigned appraiser’s contact information for taxpayers who wish to discuss their assessment.
District property owners who believe their proposed TY 2020 assessment does not reflect the market value of their property are encouraged to file an appeal on or before April 1, 2019. As a reminder, property owners can appeal their assessment online by visiting otr.cfo.dc.gov under the “Real Property” tab.
As we continue our dialogue with the Office of Tax and Revenue to examine ways to improve the District’s real property tax assessment and appeal processes, it is imperative that we hear from you about your assessments so we can identify additional changes to improve the commercial real property assessment process.
Property owners can access the following documents here:
UPDATE: The District's general sales and tax rate will be 5.75%, a decrease from 6%, as of Oct. 1, 2013. See OTR TAX NOTICE 2013-05.