WDCAR: Washington, DC Association of REALTORS®: Public Policy

Washington, DC Association of REALTORS® - a state level association

PUBLIC POLICY

Call to Action!
Budget Vote May 26!
Oppose the New Vacant Property Tax Class Rate!

May 26, 2010

Mayor Fenty's proposed graduated fee system for vacant property with no exemptions has been scrapped. Councilmembers Muriel Bowser and Jack Evans have offered substitute language that establishes a new Vacant Property Tax Class Rate - a Fourth Property Tax Class Rate at $5.00 per $100 of assessed value - 5% of the Property's Value.

This morning, May 26, before the budget vote is taken, we would like you to voice your concerns about this new Vacant Property Tax Class Rate.

Even though a property owner is still required to register their vacant building, the Bowser-Evans substitute language would allow for a number of exemptions from the vacant property registration fee of $250 including:

A one-year exemption if you are actively listing a property for sale or for rent (two years for the sale of commercial properties);
Property undergoing active construction or undergoing active rehabilitation, renovation, or repair;
Property subject to pending application for a necessary approval for development before the various DC Boards and agencies;
Property subject to probate proceedings; and a few others.

However, if the property does not qualify for an exemption, the property will have to pay the $250 registration fee AND be subject to the newly created - Vacant Property Tax Class Rate of $5/$100 of assessed value.

The Bowser-Evans proposal will create four property tax class rates in the District:

Class 1 Residential		$0.85 per $100 of assessed value (currently)
Class 2 Commercial		$1.85 per $100 of assessed value (currently)
Class 3 VACANT		$5.00 per $100 of assessed value (proposed start October 1, 2010)
Class 4 Blighted		$10.00 per $100 of assessed value (currently)

Over $2.5 million dollars will be generated from this new Vacant Property Tax Class Rate. Unfortunately, this money will fund other programs not related to improving nuisance or blighted properties.

Your REALTOR^® associations have been fighting these issues throughout the budget process and strongly advocated for five particular points:

Blighted properties cause the most damage to the community. Blighted properties should be the District's focus.
Code Violations, and more specifically repeated code violations, lead to Blight (not vacant properties.)
We strongly oppose a Vacant Property Tax Class.
We strongly oppose a Fourth Property Tax Class.
We strongly oppose the registration of merely vacant property.

We would like to thank all who have taken part in the process. Without you, Councilmembers would not have heard our concerns and there would be no exemptions or exempt properties.

Contact the DC Councilmembers today. Tell them:

No to the Vacant Property Tax Class

No to a Fourth Property Tax Class

E-mail all Councilmembers at: dccouncil@dccouncil.us

To contact individual Councilmembers:

Council Chair Vince Gray: vgray@dccouncil.us - 202-724-8032

At-Large Councilmember Michael Brown: mbrown@dccouncil.us - 202-724-8105

At-Large Councilmember Kwame Brown: kbrown@dccouncil.us - 202-724-8174

At-Large Councilmember David Catania: dcatania@dccouncil.us - 202-724-7772

At-Large Councilmember Phil Mendelson: pmendelson@dccouncil.us - 202-724-8064

Ward 1 Councilmember Jim Graham: jgraham@dccouncil.us - 202-724-8181

Ward 2 Councilmember Jack Evans: jevans@dccouncil.us - 202-724-8058

Ward 3 Councilmember Mary Cheh: mcheh@dccouncil.us - 202-724-8062

Ward 4 Councilmember Muriel Bowser: mbowser@dccouncil.us - 202-724-8052

Ward 5 Councilmember Harry Thomas, Jr.: hthomas@dccouncil.us - 202-724-8028

Ward 6 Councilmember Tommy Wells: twells@dccouncil.us - 202-724-8072

Ward 7 Councilmember Yvette Alexander: yalexander@dccouncil.us - 202-724-8068

Ward 8 Councilmember Marion Barry: mbarry@dccouncil.us - 202-724-8045

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