D.C. Code § 47-902

Current through codified legislation effective September 4, 2024

Section 47-902 - Enumeration of transfers exempt from tax

The following transfers shall be exempt from the tax imposed by this chapter:

(1) Repealed;

(2) Transfers of property by the United States of America or the District of Columbia governments, unless its taxation has been authorized by Congress;

(3) Transfers of real property by an institution, organization, corporation, or government receiving a valid real property tax exemption for the real property under § 47-1002 (or exempt from transfer taxes under a law of the United States of America or the District of Columbia); provided further, that this exemption shall not apply to property which is exempt under § 47-1002(29) or § 47-1002(30);

(4) Repealed;

(5) Transfers between spouses, parent and child, grandparent and grandchild, or domestic partners as defined in § 32-701(3), without actual consideration therefor;

(6) Transfers evidenced by deeds of release of property which is security for a debt or other obligation;

(7) Transfers which secure a debt or other obligation;

(8) Transfers which, without additional consideration, confirm, correct, modify, or supplement a transfer previously recorded;

(9) Transfers of property to a qualifying lower income homeownership household in accordance with § 47-3503(b);

(10) Transfers of property to a qualifying nonprofit housing organization in accordance with § 47-3505(b);

(11) Transfers of property to a cooperative housing association in accordance with § 47-3503(b)(2);

(12) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust;

(13) A transfer of property to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust;

(14) A transfer of property by the trustee of a revocable trust if the transfer would otherwise be exempt under this section if made by the grantor of the revocable trust;

(15) The transfer of property to a resident management corporation in accordance with § 47-3506.01;

(16)

(A) A transfer of property to an entity in accordance with § 29-204.06;

(B) In order for limited liability companies to receive the exemption provided in subparagraph (A) of this paragraph, the Director of the Department of Finance and Revenue shall be notified, within 30 days, of any change to the members or interests in profits and losses during the 12-month period following the effective date of the conversion so that the applicable transfer tax can be imposed; and

(C) Violation of the provisions of subparagraph (B) of this paragraph shall be punishable pursuant to § 47-918 [repealed];

(17)

(A) Transfers with respect to the real property (and any improvements thereon) described as Square 454, Lots 41, 824, 838, 857, 877, 878; the portion of the public alley that reverted to (i) former Lot 820, (which is currently known as Lot 866), and (ii) former Lot 821 (which is currently known as Lot 867) pursuant to the Plat of Alley Closing filed with the Surveyor of the District of Columbia in Liber 17 at folio 74; the portions of the public alley that will revert to Lots 41, 824, 838, 857, 877 and 878, all in Square 454, pursuant to the alley closing approved by the Closing of Public Alleys in Square 454 and Square 455, S.O. 98-194 Act of 1999, effective October 22, 1999 (D.C. Law 13-48; 46 DCR 6768).

(B) The amount of all taxes, fees, and deposits exempt, abated, or waived under this paragraph, section 2(b) of the Gallery Place Economic Development Amendment Act of 2000, effective April 3, 2001 (D.C. Law 13-241; 48 DCR 610) [§ 2-1217.31(b)], and §§ 45-922(24) [§ 42-1102(24)], 47-1002(26), and 47-2005(32) [§ 47-2005(30)], shall not exceed, in the aggregate, $7 million;

(18) Deeds of personal representatives of decedents, acting under the provisions of Title 20, transferring to a distributee, without additional consideration, real property of a decedent or a life estate in real property;

(19)

(A) Transfers with respect to the real property (and any improvements thereon) described as Square 299, Lot 831, in connection with the debt or equity financing for the Mandarin Oriental Hotel Project until the Development Sponsor sells the Mandarin Oriental Hotel Project, as evidenced by the recordation of a deed conveying title to Square 299, Lot 831, at which time such amounts shall be due and payable without penalty or interest.

(B) The amount of all taxes, fees, and deposits deferred under this paragraph, section 2(b) of the Mandarin Oriental Hotel Tax Deferral Act of 2002, passed on 2nd reading on September 17, 2002 (Enrolled version of Bill 14-466) [D.C. Law 14-232], and §§ 42-1102(25), 47-1002(27), and 47-2005(33) [§ 47-2005(34)], shall not exceed, in the aggregate, $4 million.

(C) For purposes of this paragraph, the term:

(i) "Development Sponsor" means Portals Hotel Site, LLC, a Delaware limited liability company, and its successors and assigns.

(ii) "Mandarin Oriental Hotel Project" means the acquisition and initial development, construction, equipping, and furnishing of a Mandarin Oriental hotel within the Portals project, located on Square 299, Lot 831, consisting of a 400-room hotel with approximately 33,000 square feet of associated meeting and banquet space, 2 restaurants, a health spa and fitness center totaling approximately 10,000 square feet, and approximately 90,000 square feet of public parking space for approximately 200 cars.

(iii) "Mandarin TIF Bonds" means the tax increment financing bonds issued in connection with the Mandarin Oriental Hotel Project pursuant to the Tax Increment Revenue Bonds Mandarin Hotel Project Emergency Approval Resolution of 2000, effective March 7, 2000 (Res. 13-510; 47 DCR 2133), and the Mandarin Hotel Project Modification Approval Resolution of 2000, effective December 19, 2000 (Res. 13-745; 48 DCR 83).

(D) This paragraph shall apply upon the closing of the sale of the Mandarin TIF Bonds;

(20) Transfers pursuant to a decree of divorce or of separate maintenance or pursuant to a written instrument incident to such divorce or separation;

(21) Transfers by an entity described in paragraph (3) of this section of a lease or ground rent for a term (including renewals) that is at least 30 years;

(22)

(A) Transfers of residential real property, without consideration for the transfer, to the trustee of a special needs trust established for the benefit of a trust beneficiary who has a disability, as defined in section 1614(a)(3) of the Social Security Act, 86 Stat. 1471; 42 U.S.C. § 1382c(a)(3)), or from the trustee of a special needs trust that, by its terms, terminates upon the death of the trust beneficiary with a disability.

(B) For the purposes of subparagraph (A) of this paragraph, a trust is a special needs trust if the trust instrument:

(i) States, among its purposes, that the trust assets are not intended to be counted in determining the beneficiary's eligibility for needs-based governmental benefits; and

(ii)

(I) Names the beneficiary with a disability as the sole trust beneficiary during his or her lifetime; and

(II) Provides that the beneficiary with a disability may not serve as trustee.

(23) Transfers of property to a qualifying eligible household pursuant to the Inclusionary Zoning Program established by subchapter II-A of Chapter 10 of Title 6.

(24) Transfer of real property to the District of Columbia, without consideration for the transfer, at the request of the District of Columbia, and conveyed as a bona fide gift to the District of Columbia.

(25) Transfers of property to which there is a valid certification by the Mayor that both the property and transferor are eligible for exemption from property taxation pursuant to § 47-1005.02; provided, that, unless waived by regulation, a copy of the certification shall accompany the deed at the time it is submitted for recordation.

(26) Transfers of property transferred to a named beneficiary of a revocable transfer on death deed under Subchapter IV of Chapter 6 of Title 19, by reason of the death of the grantor of the revocable transfer on death deed.

(27) The transfer of real and personal property between the electric company and the District pursuant to [§ 34-1313.11(c)].

(28)

(A) Transfers with respect to the real property (and any improvements thereon) described as Square 5633, Lots 802, 803, 804, 805, 806, 807, 808, 809, 810, 811, 812, 813, 814, 815, 816, 817, 818, 822, 823, 824, 825, 826, 827, 828, 829, 830, 831, 7000, 7009, and 7010, as evidenced by the recordation of a deed conveying title to the real property between October 1, 2020, and December 31, 2020.

(B) The amount of all taxes, fees, and deposits exempted under this paragraph and § 42-1102(36), shall not exceed, in the aggregate, $420,840.

D.C. Code § 47-902

Amended by D.C. Law 23-149,§ VII-O-7173, 67 DCR 10493, eff. 12/3/2020.

Sept. 13, 1980, D.C. Law 3-92, § 402, 27 DCR 3390; Mar. 10, 1982, D.C. Law 4-72, § 2, 28 DCR 5273; Oct. 8, 1983, D.C. Law 5-31, § 10(a), 30 DCR 3879; Mar. 16, 1989, D.C. Law 7-205, § 4, 36 DCR 457; Mar. 7, 1992, D.C. Law 9-56, § 2, 38 DCR 7281; June 11, 1992, D.C. Law 9-120, § 4(b), 39 DCR 3195; Sept. 8, 1995, D.C. Law 11-38, § 4(c), 42 DCR 3269; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 3, 2001, D.C. Law 13-241, § 4(a), 48 DCR 610; June 9, 2001, D.C. Law 13-305, § 505(b), 48 DCR 334; Oct. 19, 2002, D.C. Law 14-213, §§ 33(k), 36(d), 49 DCR 8140; Mar. 25, 2003, D.C. Law 14-232, § 4(a), 49 DCR 9764; Apr. 4, 2003, D.C. Law 14-282, § 11(o), 50 DCR 896; Mar. 13, 2004, D.C. Law 15-105, § 38(b)(1), 51 DCR 881; Sept. 8, 2004, D.C. Law 15-176, § 5, 51 DCR 5707; Apr. 5, 2005, D.C. Law 15-293, § 13(a), 52 DCR 1465; Apr. 13, 2005, D.C. Law 15-354, § 73(c), 52 DCR 2638; Oct. 20, 2005, D.C. Law 16-33, §§ 1213, 1297(b), 52 DCR 7503; Mar. 14, 2007, D.C. Law 16-275, § 204, 54 DCR 880; Apr. 24, 2007, D.C. Law 16-305, § 73(c), 53 DCR 6198; Mar. 20, 2008, D.C. Law 17-118, § 202(a), 55 DCR 1461; Sept. 12, 2008, D.C. Law 17-231, § 41(d), 55 DCR 6758; Sept. 14, 2011, D.C. Law 19-21, § 7052, 58 DCR 6226; Mar. 5, 2013, D.C. Law 19-210, § 4(a), 59 DCR 13171; Dec. 24, 2013, D.C. Law 20-61, § 7153(a), 60 DCR 12472; Dec. 4, 2014, D.C. Law 20-141, § 101(b), 61 DCR 7763; Feb. 26, 2015, D.C. Law 20-155, §§ 7102(b), 7104, 61 DCR 9990; July 11, 2017, D.C. Law 22-5, § 3(b), 64 DCR 4943; Sept. 23, 2017, D.C. Law 22-24, § 5, 64 DCR 7647.

Section 6 of D.C. Law 22-24 provided that Law 22-24 "shall apply as of June 5, 2017, which is the effective date of the amendments to the inclusionary zoning regulations, set forth at Chapter 10 of Title 11-C of the District of Columbia Municipal Regulations, that were promulgated by the Zoning Commission for the District of Columbia on October 17, 2016 in its Notice of Final Rulemaking and Zoning Commission Order No. 04-33G (63 DCR 15404)."

Mayor authorized to issue rules: Section 6 of D.C. Law 9-56 provided that the Mayor shall, pursuant to subchapter I of Chapter 5 of Title 2, issue rules to implement the provisions of the act.

Section 5 of D.C. Law 9-120 provided that the Mayor may issue rules to implement the provisions of the act.

Section 2 of D.C. Law 13-241, as amended by section 40 of D.C. Law 14-213, provided:

"Tax and fee abatements Gallery Place Project .

"(a) For the purposes of this section, the term:

"(1) ~Development Sponsor' means Gallery Place Holdings LLC, a Delaware limited liability company, and its successors and assigns.

"(2) ~Gallery Place Project' means the acquisition, construction, installing, and equipping of a mixed-use complex located on Square 454, Lots 41, 824, 838, 857, 877, 878; the portion of the public alley that reverted to former Lot 820 (which is currently known as Lot 866), and former Lot 821 (which is currently known as Lot 867) pursuant to the Plat of Alley Closing filed with the Surveyor of the District of Columbia in Liber 17 at folio 74; and the portions of the public alley that will revert to Lots 41, 824, 838, 857, 877 and 878, all in Square 454, pursuant to the alley closing approved by the Closing of Public Alleys in Square 454 and Square 455, S.O. 98-194, Act of 1999, effective October 22, 1999 (D.C. Law 13-48; 46 DCR 6768), and consisting of:

"(A) An approximately 60,000-square-foot multiplex cinema;

"(B) A mixed-use facility providing for retail stores, dining, entertainment, a health and fitness club, offices, and related facilities;

"(C) A market-rate housing complex consisting of approximately 170 residential units;

"(D) A parking garage containing approximately 850 parking spaces; and

"(E) Other ancillary improvements.

"(b) All fees to be paid, and any deposits to be made, by or on behalf of the Development Sponsor in connection with the Gallery Place Project under the eighth unnumbered paragraph of the General Expenses title of An Act Making Appropriations to provide for the expense of the Government of the District of Columbia for the fiscal year ending June thirtieth, nineteen hundred and ten, and for other purposes are hereby waived.

"(c) The amount of all taxes, fees, and deposits exempt, abated, or waived under subsection (b) of this section, section 302(24) of the District of Columbia Recordation Tax Act and D.C. Code 47-902(17), 47-1002(26), and 47-2005(32), shall not exceed, in the aggregate, $7 million.

"(d) In accordance with section 5 of An Act providing a permanent form of government for the District of Columbia the Mayor shall expend up to $2 million to improve and repair the streets, sewers, alleys, sidewalks, curbs, and gutters abutting the Gallery Place Project. All assessments upon abutting property for the cost of improvements to such streets, sewers, alleys, sidewalks, curbs, and gutters, including any expenses of assessment, shall be waived."

Applicability of D.C. Law 15-176: Section 7 of D.C. Law 15-176 provided: "Sections 2 through 6 shall apply as of October 1, 2003."

Applicability and expiration of subtitle KK of title I, §§ 1295 to 1300, of D.C. Law 16-33: Sections 1298 and 1299, as amended by D.C. Law 17-219, § 7068(l), (m) provided:

"Sec. 1298. Conditional applicability.

(a) Sections 1296 and 1297 shall apply for taxable years beginning after September 30, 2005.

"(b) Repealed.

"Sec. 1299. Repealed."

Application of Law 19-210. Section 7 of D.C. Law 19-210 provided that the act shall apply as of January 1, 2012.

Applicability of D.C. Law 20-61: Section 7153(b) of D.C. Law 20-61 provided that § 7153(a) (which added § 47-902(25)) shall apply as of September 20, 2012.

D.C. Law 20-141 became effective on Dec. 4, 2014, but was repealed prior to its effective date by emergency D.C. Act 20-377, § 7114, eff. July 14, 2014, 61 DCR 7598, by emergency D.C. Act 20-449, § 7104, eff. October 10, 2014, 61 DCR 10915, by emergency D.C. Act 20-566, § 7104, eff. January 9, 2015, 62 DCR 884, and by D.C. Law 20-155, § 7104, 61 DCR 9990.