D.C. Code § 2-1216.01: Federal Property Tax Fund.

(a)

There is established as a special fund the Federal Properties Tax Fund ("Fund"), which shall be administered by the Mayor in accordance with subsections (c) and (d) of this section.

(b)

Revenue from the real property tax imposed by § 47-811 and the possessory interest tax imposed by § 47-1005.01 on covered former federal properties shall be deposited in the Fund.

(c)

Money in the Fund may be used to:

(1)

Implement and support infrastructure improvements, civic projects, redevelopment, and property acquisition in the following areas:

(A)

The Downtown BID, as defined in § 2-1215.51(b);

(B)

The Golden Triangle BID, as defined in § 2-1215.52(b);

(C)

The Southwest BID, as defined in § 2-1215.60(b); or

(D)

The parcels, lots, and public right of way within, or adjacent to, squares 0184, 0267, and 0299;

(2)

Pay debt service, including principal and interest, costs of issuance, and credit enhancements, and any costs of defeasance on bonds issued to support development of a covered former federal property; and

(3)

Pay the costs of tax abatements awarded pursuant to § 47-861.05.

(d)

The money deposited into the Fund but not expended in a fiscal year shall not revert to the unassigned fund balance of the General Fund of the District of Columbia at the end of the fiscal year, or at any other time.

(e)

For the purposes of this section, the term "covered former federal property" means:

(1)

A property located in one of the geographic areas listed in subsection (c)(1) (A), (B), or (C) of this section that:

(A)

Is owned by the District;

(B)

Was owned by the federal government immediately prior to its ownership by the District;

(C)

Was disposed by the federal government to the District after January 1, 2026;

(D)

Is ground leased to a private entity by the District pursuant to a ground lease and development agreement;

(E)

Was not subject to tax under §§ 47-811 or 47-1005.01 immediately prior to being ground leased by the District government; and

(F)

Continues to be subject to the ground lease and development agreement;

(2)

A property located in one of the geographic areas listed in subsection (c)(1) (A), (B), or (C) of this section that:

(A)

Was owned by the District;

(B)

Was owned by the federal government immediately prior to its ownership by the District;

(C)

Was disposed by the federal government to the District after January 1, 2026;

(D)

Was disposed of by the District pursuant to a sale and development agreement between the District and a private entity;

(E)

Was not subject to tax under §§ 47-811 or 47-1005.01 while owned by the District government or federal government; and

(F)

Continues to be subject to the sale and development agreement;

(3)

A property located in one of the geographic areas listed in subsection (c)(1) (A), (B), or (C) of this section that:

(A)

Was owned by the federal government;

(B)

Was disposed of by the federal government to a private entity after January 1, 2026, pursuant to a sale and development agreement between the federal government and the private entity;

(C)

Was not subject to tax under §§ 47-811 or 47-1005.01 while owned by the federal government; and

(D)

Continues to be subject to the sale and development agreement; or

(4)

A property located in one of the geographic areas listed in subsection (c)(1) (A), (B), or (C) of this section that:

(A)

Is owned by the federal government;

(B)

Is ground leased by the federal government to a private entity after January 1, 2026, pursuant to a ground lease and development agreement between the federal government and the private entity;

(C)

Was not subject to tax under §§ 47-811 or 47-1005.01 while owned by the federal government; and

(D)

Continues to be subject to the ground lease and development agreement.

(f)

No later than a year after revenue is deposited into the Fund pursuant to subsection (b) of this section, and annually thereafter, the Mayor shall submit to the Council a report that provides an analysis of:

(1)

Planned spending of the revenues by use and geographic area, as prescribed in subsection (c) of this section;

(2)

Prior spending of any revenues deposited into the Fund by use and geographic area, as prescribed in subsection (c) of this section; and

(3)

How planned or prior spending of revenues deposited into the Fund advances the economic development goals of each geographic area listed in subsection (c)(1) of this section.

(g)

The Mayor, pursuant to subchapter I of Chapter 5 of this title, may issue rules to implement this section.