{"data":{"id":"us-dc/d.c.-code-47-813","jurisdiction":"us-dc","citation":"D.C. Code § 47-813","heading":"Classes of property.","body":"\n      *NOTE: This section includes amendments by temporary legislation that will expire on January 1, 2027. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Past Permanent Version.*\n      \n\n(a)\nFor the purpose of levying taxes on real property in the District of Columbia, the Council may establish different classes of real property.\n\n(b)\nFor the property tax year beginning July 1, 1979, and ending June 30, 1980, the following classes of real property are established:\n(1)\n(A)\nClass 1 Property shall be comprised of improved residential real property which:\n(i)\nIs occupied by the owner thereof;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property; provided, that at least 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association;\n(2)\n(A)\nClass 2 Property shall be comprised of improved residential real property, which:\n(i)\nIs not occupied by the owner thereof;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property; provided, that less than 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association.\n(C)\nNothing in this subsection shall be construed to include hotels in the Class 2 Property classification;\n(3)\nClass 3 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property.\n\n(c)\nFor the property tax year beginning July 1, 1980, and ending June 30, 1981, and for each tax year thereafter, the following classes of real property are established:\n(1)\n(A)\nClass 1 Property shall be comprised of improved residential real property which:\n(i)\nIs occupied by the owner thereof;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property; provided, that at least 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association.\n(C)\nVacant real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if said vacant property and the improved residential real property which it abuts have common ownership. For the property tax year beginning July 1, 1984, and ending June 30, 1985, and for each tax year thereafter, vacant real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:\n(i)\nThe vacant real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structures on the vacant real property as a matter of right; and\n(iii)\nThe owner of the vacant real property also owns the Class 1 improved residential real property separated by the alley from the vacant lot;\n(2)\n(A)\nClass 2 Property shall be comprised of improved residential real property, including apartment buildings, which:\n(i)\nIs not occupied by the owner thereof;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property; provided, that less than 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association.\n(C)\nImproved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.\n(D)\nVacant real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if said vacant property and the improved residential real property which it abuts have common ownership. For the property tax year beginning July 1, 1984, and ending June 30, 1985, and for each tax year thereafter, vacant real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:\n(i)\nThe vacant real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission do not allow the building of any structures on the vacant real property as a matter of right; and\n(iii)\nThe owner of the vacant real property also owns the Class 2 improved residential real property separated by the alley from the vacant lot.\n(E)\nThe Mayor may require an owner of real property to submit such information relating to the ownership of vacant real property as in the Mayor’s judgment will assist in the determination of ownership of such property as required under this section for purposes of real property classification;\n(3)\nClass 3 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property. Vacant real property which abuts and has common ownership with real property subject to the apportionment provision of subsection (f) of this section shall also be classified as Class 3 Property.\n\n(c-1)\nFor the property tax year beginning July 1, 1985, and ending June 30, 1986, and for each subsequent tax year, the following classes of real property not covered in subsection (c-2) or (c-3) of this section are established:\n(1)\n(A)\nClass 1 Property shall be comprised of improved residential real property which:\n(i)\nIs occupied by the owner of the property;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property, so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.\n(C)\nVacant real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the vacant property and the improved residential real property which it abuts have common ownership.\n(D)\nVacant real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:\n(i)\nThe vacant real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structures on the vacant real property as a matter of right; and\n(iii)\nThe owner of the vacant real property also owns the Class 1 improved residential real property separated by the alley from the vacant lot.\n(2)\n(A)\nClass 2 Property shall be comprised of improved residential real property, including buildings, which:\n(i)\nIs not occupied by the owner thereof;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property, so long as less than 50% the dwelling units are occupied by the shareholders or members of the cooperative housing association.\n(C)\nImproved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.\n(D)\nVacant real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the vacant property and the improved residential real property which it abuts have common ownership.\n(E)\nVacant real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:\n(i)\nThe vacant real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission do not allow the building of any structures on the vacant real property as a matter of right; and\n(iii)\nThe owner of the vacant real property also owns the Class 2 improved residential real property separated by the alley from the vacant lot.\n(F)\nThe Mayor may require an owner of real property to submit such information relating to the ownership of vacant real property as in the Mayor’s judgment will assist in the determination of ownership of the property as required under this section for purposes of real property classification.\n(3)\n(A)\nClass 3 Property shall be comprised of improved commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings or accommodations to transients.\n(B)\nFor purposes of subparagraph (A) of this paragraph the term “transient” means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient, but shall be considered a permanent resident of the hotel, motel or inn.\n(4)\nClass 4 Property shall be comprised of all real property which is not Class 1 Property, Class 2 Property or Class 3 Property. Vacant real property which abuts and has common ownership with real property subject to the apportionment provision of subsection (f) in this section shall also be classified as Class 4 Property.\n\n(c-2)\nFor the property tax year beginning July 1, 1990, and ending June 30, 1991, and the subsequent tax years beginning July 1, 1991, and ending June 30, 1992, and beginning July 1, 1992, and ending June 30, 1993, and for the period beginning July 1, 1993, and ending September 30, 1993, and beginning October 1, 1993, and ending September 30, 1994, the following classes of real property are established:\n(1)\n(A)\nClass 1 Property shall be comprised of improved residential real property which:\n(i)\n(I)\nIs occupied by the owner of the property; or\n(II)\nIs unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied by the owner of the property at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property, so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.\n(C)\nUnimproved real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the improved residential real property which it abuts have common ownership.\n(D)\nUnimproved real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:\n(i)\nThe unimproved real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 1 improved residential real property separated by the alley from the unimproved real property.\n(2)\n(A)\nClass 2 Property shall be comprised of improved residential real property, including buildings, which:\n(i)\nIs not occupied by the owner thereof;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property, so long as less than 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.\n(C)\nImproved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.\n(D)\nUnimproved real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the improved residential real property which it abuts have common ownership.\n(E)\nUnimproved real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:\n(i)\nThe unimproved real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 2 improved residential real property separated by the alley from the unimproved real property.\n(F)\nThe Mayor may require an owner of real property to submit such information relating to the ownership of unimproved real property as in the Mayor’s judgment will assist in the determination of ownership of the property as required under this section for purposes of real property classification.\n(3)\n(A)\nClass 3 Property shall be comprised of improved commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.\n(B)\nFor purposes of subparagraph (A) of this paragraph, the term “transient” means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient but shall be considered a permanent resident of the hotel, motel, or inn.\n(4)\nClass 4 Property shall be comprised of:\n(A)\nAll improved real property, which is not Class 1 Property, Class 2 Property, or Class 3 Property;\n(B)\nUnimproved real property, which is not Class 1 Property, Class 2 Property, or Class 3 Property, if any of the following conditions are met:\n(i)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;\n(ii)\nA building permit has been issued and is in effect as of July 1, 1990; or\n(iii)\nThe unimproved real property is used as a parking lot and each approval required from the District of Columbia government for use as a parking lot has been obtained;\n(C)\nFor the property tax year beginning July 1, 1991, and ending June 30, 1992, any improved or unimproved real property classified as Class 4 Property as of June 30, 1991, unless the real property qualifies as Class 1, Class 2, or Class 3;\n(D)\nFor the property tax year beginning July 1, 1991, and ending June 30, 1992, any unimproved real property that was classified as improved real property as of June 30, 1991, unless the real property qualifies as Class 1, Class 2, or Class 3; and\n(E)\nClass 4 Property shall include, as of June 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the District of Columbia Generalized Land Use Map dated November 1992 that is part of the Comprehensive Plan, provided that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, “the term predevelopment activities” means completion of 1 of the following:\n(i)\nPreparation of subdivision or large tract review applications;\n(ii)\nPreparation or application for District permits or authorizations to proceed with development;\n(iii)\nParticipation in special planning or transportation studies prepared in conjunction with the District; or\n(iv)\nCompletion of environmental assessment or mitigation studies prepared in conjunction with the District.\n(5)\n(A)\nClass 5 Property shall be comprised of all unimproved real property which is not Class 1 Property, Class 2 Property, Class 3 Property, or Class 4 Property.\n(B)\nUnimproved real property that abuts and has common ownership with real property subject to the apportionment provision of subsection (f) of this section and cannot be classified as Class 1 Property, Class 2 Property, Class 3 Property, or Class 4 Property shall also be classified as Class 5 Property.\n\n(c-3)\nFor the property tax year beginning October 1, 1994, and ending September 30, 1995, and for each subsequent tax year, the following classes of real property are established:\n(1)\n(A)\nClass 1 Property shall be comprised of improved residential real property that:\n(i)\n(I)\nIs occupied by the owner of the property; or\n(II)\nIs unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied by the owner of the property at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property that is owned by a cooperative housing association shall also be classified as Class 1 Property so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.\n(C)\nClass 1 Property that becomes unoccupied shall be classified as Class 2 Property if the property becomes unoccupied due to any of the following conditions:\n(i)\n[Repealed];\n(ii)\nThe improved real property is actively for sale at a reasonable market price as of September 30 of the preceding tax year;\n(iii)\nA building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year; or\n(iv)\nThe improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation.\n(D)\nUnimproved real property which abuts improved and occupied residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the improved and occupied residential real property which it abuts have common ownership.\n(E)\nUnimproved real property which is separated from Class 1 improved and occupied residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:\n(i)\nThe unimproved real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 1 improved and occupied residential real property separated by the alley from the unimproved real property.\n(2)\n(A)\nClass 2 Property shall be comprised of improved and occupied residential real property, including a building, that:\n(i)\nIs occupied, but not by the owner;\n(ii)\nContains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property so long as less than 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.\n(C)\nImproved and occupied multifamily residential real property which contains more than 5 dwelling units and is used exclusively for nontransient purposes shall also be classified as Class 2 Property.\n(D)\nUnimproved real property which abuts improved and occupied residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the improved and occupied residential real property which it abuts have common ownership.\n(E)\nUnimproved real property which is separated from Class 2 improved and occupied residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:\n(i)\nThe unimproved real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 2 improved and occupied residential real property separated by the alley from the unimproved real property.\n(F)\nClass 2 Property that becomes unoccupied shall be classified as Class 4 Property if it becomes unoccupied due to any of the following conditions:\n(i)\nA major fire, flood, or other casualty to the improved real property, which was not intentionally caused by the owner, has occurred during the 12 months preceding the tax year;\n(ii)\nA building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year;\n(iii)\nThe improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation; or\n(iv)\nAn application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year, before the Board of Zoning Adjustment, the Zoning Commission, the Commission of Fine Arts, the Historic Preservation Review Board, or the National Capital Planning Commission.\n(G)\nImproved real property described in paragraph (1)(C) of this subsection.\n(3)\n(A)\nClass 3 Property shall be comprised of improved and occupied commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.\n(B)\nFor purposes of subparagraph (A) of this paragraph, the term “transient” means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient, but shall be considered a permanent resident of the hotel, motel, or inn.\n(C)\nClass 3 Property that becomes unoccupied shall be classified as Class 4 Property if it becomes unoccupied due to any of the following conditions:\n(i)\nA major fire, flood, or other casualty to the improved real property, which was not intentionally caused by the owner, has occurred during the 12 months preceding the tax year;\n(ii)\nA building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year;\n(iii)\nThe improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation; or\n(iv)\nAn application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year, before the Board of Zoning Adjustment, the Zoning Commission, the Commission of Fine Arts, the Historic Preservation Review Board, or the National Capital Planning Commission.\n(4)\nClass 4 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property or Class 3 Property.\n(5)\nRepealed.\n\n(c-4)\nFor the real property tax year beginning October 1, 2001, and ending September 30, 2002, the following classes of real property are established:\n(1)\n(A)\nClass 1 Property shall be comprised of improved residential real property that:\n(i)\nIs occupied; and\n(ii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nImproved residential real property that is owned by a cooperative housing association shall also be classified as Class 1 Property.\n(C)\nImproved and occupied multifamily residential real property which is used exclusively for nontransient dwelling purposes shall also be classified as Class 1 Property.\n(D)\nUnimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the Class 1 Property have common ownership.\n(E)\nUnimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:\n(i)\nThe unimproved real property is less than 1,000 square feet in size;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 1 Property separated by the alley from the unimproved real property.\n(F)\nClass 1 Property that becomes unoccupied shall remain classified as Class 1 Property if:\n(i)\nUnoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;\n(ii)\nThe improved real property is actively for sale at a reasonable market price as of September 30 of the preceding tax year;\n(iii)\nA building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year; or\n(iv)\nThe improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation.\n(2)\nClass 2 Property shall be comprised of all real property which is not Class 1 Property.\n\n(c-5)\nRepealed.\n\n(c-6)\n(1)\nFor tax years 2003 through 2006, the following classes of taxable real property are established:\n(A)\nClass 1 Property;\n(B)\nClass 2 Property; and\n(C)\nClass 3 Property.\n(2)\n(A)\nClass 1 Property shall be comprised of residential real property that:\n(i)\nIs improved;\n(ii)\nIs occupied; and\n(iii)\nIs used exclusively for nontransient residential dwelling purposes.\n(B)\nUnimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the Class 1 Property have common ownership.\n(C)\nResidential real property that is either unoccupied or unimproved shall remain classified as Class 1 property if:\n(i)\nThe improved real property is unoccupied due to a fire, flood, or other casualty, if the property was occupied at the time of the casualty, and the fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner or sole tenant;\n(ii)\nThe real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a property which has been offered for sale or rental for more than 8 months shall be presumed not to be offered for sale or rental at a reasonable market price;\n(iii)\nA building permit or a demolition permit has been issued and construction or demolition is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;\n(iv)\nA building permit has been issued during the 24 months preceding the current tax year;\n(v)\nThe improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation;\n(vi)\nAn application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year or as of March 31 of the current tax year, before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor’s Agent for Historic Preservation, or the National Capital Planning Commission;\n(vii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;\n(viii)\nThe unimproved real property is used as a parking lot and each approval required from the District government for use as a parking lot has been obtained;\n(ix)\nUnimproved air rights lot that appertains to improved and occupied real property;\n(x)\nProperty is designated as a historic landmark under subchapter I of Chapter 11 of Title 6, or is the subject of an agreement that runs with the land and provides for the preservation of certain historic features of the improvement;\n(xi)\nThe unimproved real property is the subject of a public hearing on a proposed overlay zone or on a proposed downzoning of the zone district classification of the real property (other than a downzoning under § 1-301.67 or § 1-301.68 [see now § 1-306.01 et seq.]); or\n(xii)\nThe unimproved real property is encumbered by a deed of trust that was recorded during the 24 months preceding the current tax year.\n(D)\nUnimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:\n(i)\nThe unimproved real property is less than 1,000 square feet;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 1 Property separated by the alley from the unimproved real property.\n(E)\nReal property owned by a qualifying nonprofit housing organization under § 47-3505(a) shall be classified as Class 1 property.\n(3)\n(A)\nClass 2 Property shall be comprised of commercial real property that is improved and occupied.\n(B)\nUnimproved real property which abuts Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the Class 2 Property have common ownership.\n(C)\nCommercial real property that is unimproved or unoccupied shall remain classified as Class 2 Property if:\n(i)\nThe improved real property is unoccupied due to a fire, flood, or other casualty, if the property was occupied at the time of the casualty, and the fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner or sole tenant;\n(ii)\nThe real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a property which has been offered for sale or rental for more than 8 months shall be presumed not to be offered for sale or rental at a reasonable market price;\n(iii)\nA building permit or a demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;\n(iv)\nA building permit has been issued during the 24 months preceding the current tax year;\n(v)\nThe improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation;\n(vi)\nAn application for a necessary approval for development of the real property is pending, as of September 30 of the preceding tax year or as of March 31 of the current tax year, before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Board, the Mayor’s Agent for Historic Preservation, or the National Capital Planning Commission;\n(vii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;\n(viii)\nThe unimproved real property is used as a parking lot and each approval required from the District government for use as a parking lot has been obtained;\n(ix)\nAn unimproved air rights lot that appertains to improved and occupied real property;\n(x)\nProperty is designated as a historic landmark under subchapter I of Chapter 11 of Title 6, or is the subject of an agreement that runs with the land and provides for the preservation of certain historic features of the improvement;\n(xi)\nThe unimproved real property is the subject of a public hearing on a proposed overlay zone or on a proposed downzoning of the zone district classification of the real property (other than a downzoning under § 1-301.67 or § 1-301.68 [see now § 1-306.01 et seq.]); or\n(xii)\nThe unimproved real property is encumbered by a deed of trust that was recorded during the 24 months preceding the current tax year.\n(D)\nClass 2 Property shall include, as of September 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the current District of Columbia Generalized Land Use Map that is part of the Comprehensive Plan; provided, that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, the term “predevelopment activities” means completion of one of the following:\n(i)\nPreparation of subdivision or large tract review applications;\n(ii)\nPreparation or application for District of Columbia permits or authorizations to proceed with development;\n(iii)\nParticipation in special planning or transportation studies prepared in conjunction with the District of Columbia; or\n(iv)\nCompletion of environmental assessment or mitigation studies prepared in conjunction with the District of Columbia.\n(E)\nUnimproved real property which is separated from Class 2 Property by a public alley less than 30 feet wide shall be classified as Class 2 Property if:\n(i)\nThe unimproved real property is less than 1,000 square feet;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and\n(iii)\nThe owner of the unimproved real property also owns the Class 2 Property separated by the alley from the unimproved real property.\n(4)\nClass 3 Property shall be comprised of all real property which cannot be classified as either Class 1 Property or Class 2 Property.\n\n(c-7)\n(1)\nFor tax year 2007 and thereafter, the following classes of taxable real property are established:\n(A)\nClass 1 Property;\n(B)\nClass 2 Property; and\n(C)\nClass 3 Property.\n(2)\n(A)\nExcept as otherwise provided in this paragraph, Class 1 Property shall be comprised of residential real property that is improved and used exclusively for nontransient residential dwelling purposes; provided, that the improved and nontransient real property shall not be classified as Class 1 Property if it appears on the list compiled under § 42-3131.16.\n(B)\nUnimproved real property benefiting from an exemption under subsection (c-6)(2)(C) of this section on December 27, 2006 shall continue to benefit from the exemption and be classified as Class 1 Property for the duration permitted under that subsection; provided, that the exemption shall not be valid after September 30, 2007; provided further, that the unimproved real property may qualify for an exemption in effect after December 28, 2006 and subject to the time restriction and exclusion set forth in subparagraph (E)(ii)(II) of this paragraph.\n(C)\nReal property used as a parking lot shall be classified as Class 1 Property if it appertains to improved Class 1 Property and if each approval required from the District government for use as a parking lot has been obtained.\n(D)\nUnimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the real property and the Class 1 Property have common ownership.\n(E)\n(i)\nUnimproved, residential real property shall be classified as Class 1 Property if:\n(I)\nThe real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a real property which has been offered for sale for more than 8 months shall be presumed not to be offered for sale at a reasonable market price, and a rental offered for rental for more than 90 days shall be presumed not to be offered for rental at a reasonable market price;\n(II)\nA building permit to construct at least one nontransient dwelling unit has been issued and construction is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;\n(III)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right;\n(IV)\nThe unimproved air rights lot appertains to improved Class 1 Property;\n(V)\nFor a period not to exceed 12 months, the real property is the subject of a pending application for a necessary approval for development before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of Public Works, or the National Capital Planning Commission; or\n(VI)\nFor a period not to exceed 12 months, the real property is encumbered by a deed of trust that was recorded during the 12 months preceding the current tax year.\n(ii)\n(I)\nClassification of unimproved real property as Class 1 Property pursuant to sub-subparagraph (i)(I), (II), (III), or (IV) of this subparagraph shall not exceed 3 tax years under the same, substantially similar, or related ownership.\n(II)\nNotwithstanding sub-sub-subparagraph (I) of this sub-subparagraph, unimproved real property under the same, substantially similar, or related ownership that qualified for and benefited from an exemption under sub-subparagraph (i) of this subparagraph or under subsection (c-6)(2)(C) or (c-6)(2)(E) of this section, other than under sub-subparagraph (i)(V) or (VI) of this subparagraph or a similar provision of subsection (c-6)(2)(C), for 3 or more tax years shall no longer be classified as Class 1 Property beginning in tax year 2008.\n(III)\nFor purposes of this sub-subparagraph, ownership shall be related if a deduction for a loss from the sale or exchange of properties between taxpayers would be disallowed under section 267 of the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete liquidation shall not apply.\n(F)\nUnimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:\n(i)\nThe real property is less than 1,000 square feet;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and\n(iii)\nThe real property and the Class 1 Property separated by the alley from the real property have common ownership.\n(3)\n(A)\nExcept as otherwise provided in this paragraph, Class 2 Property shall be comprised of improved commercial real property; provided, that such improved real property shall not be classified as Class 2 Property if it appears on the list compiled under § 42-3131.16.\n(B)\nUnimproved real property benefiting from an exemption under subsection (c-6)(3)(C) of this section on December 27, 2006 shall continue to benefit from the exemption and be classified as Class 2 Property for the duration permitted under subsection (c-6)(3)(c) of this section; provided, that the exemption shall not be valid after September 30, 2007; provided further, that the unimproved real property may qualify for an exemption in effect after December 28, 2006 and subject to the time restriction and exclusion set forth in subparagraph (E)(ii)(II) of this paragraph.\n(C)\nReal property used as a parking lot shall be classified as Class 2 Property if each approval required from the District government for use as a parking lot has been obtained.\n(D)\nUnimproved real property which abuts Class 2 Property shall be classified as Class 2 Property if the real property and the Class 2 Property have common ownership.\n(E)\n(i)\nUnimproved, commercial real property shall be classified as Class 2 Property if:\n(I)\nThe real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year, provided, that a real property which has been offered for sale for more than 8 months shall be presumed not to be offered for sale at a reasonable market price, and a rental offered for rental for more than 90 days shall be presumed not to be offered for rental at a reasonable market price;\n(II)\nA building permit to construct an improvement or a parking lot has been issued and construction is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;\n(III)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right;\n(IV)\nThe unimproved air rights lot appertains to improved Class 2 Property; or\n(V)\nFor a period not to exceed 12 months, the real property is the subject of a pending application for a necessary approval for development before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of Public Works, or the National Capital Planning Commission; or\n(VI)\nFor a period not to exceed 12 months, the real property is encumbered by a deed of trust that was recorded during the 12 months preceding the current tax year.\n(ii)\n(I)\nClassification of unimproved real property as Class 2 Property pursuant to sub-subparagraph (i)(I), (II), or (III) of this subparagraph shall not exceed 3 tax years under the same, substantially similar, or related ownership.\n(II)\nNotwithstanding sub-sub-subparagraph (I) of this sub-subparagraph, unimproved real property under the same, substantially similar, or related ownership that qualified for and benefited from an exemption under sub-subparagraph (i) of this subparagraph or under subsection (c-6)(3)(C) of this section, other than under sub-subparagraph (i)(IV) or (V) of this subparagraph or under a similar provision of subsection (c-6)(3)(C) of this section, for 3 or more tax years shall no longer be classified as Class 2 Property beginning in tax year 2008.\n(III)\nFor purposes of this sub-subparagraph, ownership shall be related if a deduction for a loss from the sale or exchange of properties between taxpayers would be disallowed under section 267 of the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete liquidation shall not apply.\n(F)\nUnimproved real property which is separated from Class 2 Property by a public alley less than 30 feet wide shall be classified as Class 2 Property if:\n(i)\nThe real property is less than 1,000 square feet;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and\n(iii)\nThe real property and the Class 2 Property separated by the alley from the real property have common ownership.\n(G)\nClass 2 Property shall include, as of September 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the current District of Columbia Generalized Land Use Map that is part of the Comprehensive Plan; provided, that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, the term “predevelopment activities” means completion of one of the following:\n(i)\nPreparation of subdivision or large tract review applications;\n(ii)\nPreparation or application for District of Columbia permits or authorizations to proceed with development;\n(iii)\nParticipation in special planning or transportation studies prepared in conjunction with the District of Columbia; or\n(iv)\nCompletion of environmental assessment or mitigation studies prepared in conjunction with the District of Columbia.\n(4)\nClass 3 Property shall be comprised of all real property which cannot be classified as Class 1 Property or Class 2 Property.\n\n(c-8)\n(1)\nFor tax year 2011 and thereafter, the following classes of taxable real property are established:\n(A)\nClass 1 Property;\n(B)\nClass 2 Property;\n(C)\nClass 3 Property; and\n(D)\nClass 4 Property.\n(2)\n(A)\nExcept as otherwise provided in this paragraph and subject to paragraphs (4) and (5) of this subsection, Class 1 Property shall be comprised of residential real property that is improved and its legal use (or in the absence of use, its highest and best permitted legal use) is for nontransient residential dwelling purposes; provided, that the property may be used to host transient guests pursuant to an unexpired short-term rental license endorsement issued pursuant to [§ 30-201.04].\n(B)\nUnimproved real property located within a zone designated as residential shall be classified as Class 1 Property.\n(C)\nReal property used as a parking lot shall be classified as Class 1 Property if it appertains to improved Class 1 Property and if each approval required from the District government for use as a parking lot has been obtained.\n(D)\nUnimproved real property that abuts Class 1 Property shall be classified as Class 1 Property if the real property and the Class 1 Property have common ownership.\n(E)\nRepealed.\n(F)\nUnimproved real property that is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:\n(i)\nThe real property is less than 1,000 square feet;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and\n(iii)\nThe real property and the Class 1 Property separated by the alley from the real property have common ownership.\n(3)\nClass 2 Property shall be comprised of all real property which is not Class 1 Property, Class 3 Property, or Class 4 Property.\n(4)\n(A)\nClass 3 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.16.\n(B)\nThe Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.16.\n(5)\n(A)\nClass 4 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.17.\n(B)\nThe Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.17.\n\n(c-9)\n(1)\nFor tax year 2025 and thereafter, the following classes of taxable real property are established:\n(A)\nClass 1A Property;\n(B)\nClass 1B Property;\n(C)\nClass 2 Property;\n(D)\nClass 3 Property; and\n(E)\nClass 4 Property.\n(2)\n(A)\nExcept as otherwise provided in this paragraph and subject to paragraphs (4) and (5) of this subsection, Class 1A Property shall be comprised of:\n(i)\nResidential real property that is improved and its legal use is for nontransient residential dwelling purposes, and that is not Class 1B Property; provided, that such property may be used to host transient guests pursuant to an unexpired short-term rental license endorsement issued pursuant to § 30-201.04; or\n(ii)\nReal property or a portion of real property for which a building permit has been issued:\n(I)\nTo construct a new improvement for predominantly nontransient residential dwelling purpose; or\n(II)\nTo substantially rehabilitate that portion or all of an existing improvement for exclusively nontransient residential dwelling purposes.\n(B)\nExcept as otherwise provided in this paragraph and subject to paragraphs (4) and (5) of this subsection, Class 1B property shall be comprised of residential real property that is improved and its legal use is for nontransient residential dwelling purposes with no more than two dwelling units (excluding any housing cooperative), whether as a row, semi-detached, or detached structure, or comprising no more than 2 contiguous condominium units under common ownership; provided, that such property may be used to host transient guests pursuant to an unexpired short-term rental license endorsement issued pursuant to § 30-201.04.\n(C)\nUnimproved real property located within a zone designated solely as residential shall be classified as Class 1A Property.\n(D)\nReal property used as a parking lot that appertains to improved Class 1A or 1B Property and has obtained approval required from the District government for use as a parking lot shall be classified as Class 1A Property.\n(E)\nUnimproved real property that abuts Class 1A or 1B Property shall be classified as Class 1A Property if the real property and the Class 1A or 1B Property have common ownership.\n(F)\nUnimproved real property that is separated from Class 1A or 1B Property by a public alley less than 30 feet wide shall be classified as 1A Property if:\n(i)\nThe real property is less than 1,000 square feet;\n(ii)\nThe zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and\n(iii)\nThe real property and the Class 1A or 1B Property separated by the alley from the real property have common ownership.\n(3)\nClass 2 Property shall be comprised of all real property which is not Class 1A Property, Class 1B Property, Class 3 Property, or Class 4 Property.\n(4)\n(A)\nClass 3 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.16.\n(B)\nThe Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.16.\n(5)\n(A)\nClass 4 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.17.\n(B)\nThe Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.17.\n\n(d)\nFor purposes of this section:\n(1)\nThe term “condominium” means the ownership of a single dwelling unit in a horizontal property regime as that term is used in § 42-2003.\n(2)\nThe term “cooperative housing association” means an association, whether incorporated or unincorporated, organized for the purpose of owning and operating residential real property, the shareholders or members of which, by reason of their ownership of a stock or membership certificate, a proprietary lease or other evidence of membership, are entitled to occupy a single dwelling unit pursuant to the terms of a proprietary lease or occupancy agreement.\n(3)\nThe term “dwelling unit” means any room or group of rooms forming a single unit which is used for living, sleeping, and the preparation and eating of meals.\n(4)\nThe term “nontransient” means occupancy of a dwelling unit or units by any person for a period of more than 5 consecutive days during any 1 stay in such unit.\n(5)\n[Repealed].\n\n(d-1)\nFor the purposes of this section:\n(1)\nRepealed.\n(2)\nRepealed.\n(3)\n[Repealed].\n(3A)\n[Repealed].\n(4)\nRepealed.\n(4A)\nThe determination that real property belongs on a list compiled under § 42-3131.16 or § 42-3131.17 (and, indirectly, its Class 3 or 4 Property classification) shall only be appealed as prescribed under § 42-3131.15, notwithstanding any other provision of law. A notice of final determination by the Mayor shall be a prerequisite before an appeal to the Real Property Tax Appeals Commission for the District of Columbia may be taken.\n(4B)\nThe classification of Class 3 or 4 Property in the notice of proposed assessment under § 47-824 and § 47-829 shall not be appealed under the provisions applicable to the appeal of such notice and any statement in such notice that the real property shall be classified as other than Class 3 or 4 Property shall not be effective, notwithstanding any other provision of law.\n(5)\n(A)\nRepealed.\n(A-i)\n(i)\nWhenever the classification of improved real property that appears on a list compiled under § 42-3131.16 or § 42-3131.17 shall change to Class 3 or Class 4 Property:\n(I)\nThe owner shall notify the Department of Buildings within 30 days of the change by making application to register the property as vacant under §§ 42-3131.06 and 42-3131.07, which the change in classification of the real property to Class 3 or 4 Property shall be retroactive to the half tax year during which one of the following first occurred:\n(aa)\nThe owner of the real property registered the real property as vacant under § 42-3131.06; or\n(bb)\nThe owner of real property received a notice of final determination under § 42-3131.15;\n(II)\nThe Office of Tax and Revenue shall re-classify the real property without limitation for each tax year or half tax year after receipt of the list under § 42-3131.16 or § 42-3131.17; and\n(III)\nPenalty and interest as prescribed under § 47-811(c) shall be assessed beginning 30 days after the date of the real property tax bill that issues after any administrative appeals have been exhausted.\n(ii)\nWhenever improved real property that appears on a list compiled under § 42-3131.16 or § 42-3131.17 shall cease to be Class 3 or Class 4 Property, the owner shall notify the Department of Buildings within 30 days after the change in the manner as may be prescribed by the Mayor. If the request for a change in classification is approved, the change in classification of the real property from Class 3 Property shall be retroactive to the half tax year when the Department of Buildings was so notified. If the request is denied, the owner shall have a right to administrative review of the determination as provided under § 42-3131.15.\n(B)\nNotwithstanding subparagraph (A-i) of this paragraph, if the real property is transferred and continued to qualify for the classification 30 days or less before the date of execution of the deed of transfer, the grantor shall not be required to notify the applicable agency of the change in classification.\n(C)\nIf the tax is paid within 30 days of the corresponding bill, timely notification of the change in classification shall preclude assessment of penalty and interest.\n(6)\nIf Class 3 Property or Class 4 Property changes classification during the period October 1 through March 31 of the tax year, the Class 3 Property or Class 4 Property shall be taxed at the rate of the new classification for the entire tax year. If Class 3 Property or Class 4 Property changes classification during the period April 1 through September 30, the Class 3 Property or Class 4 Property shall be taxed at the rate of the new classification for the second installment only.\n(7)\n(A)\nThe Mayor may contract with a collection agency inside or outside of the District to verify the contents of any filings and returns and the eligibility of the real property to a classification under this section.\n(B)\nAll funds collected by the collection agency and belonging to the District shall be remitted to the Mayor not less than once a month. Forms to be utilized for the remittances may be prescribed by the Mayor. The Mayor may require that the collection agency furnish a bond securing compliance with the provisions of this paragraph and the contract with the District.\n(C)\nAt the discretion of the Mayor:\n(i)\nThe collection agency may charge a collection fee not in excess of 25% of the total amount of the delinquent taxes, excluding penalties and interest, that is actually collected; or\n(ii)\nThe collection agency may be remunerated by fee, percentage of taxes collected, or both.\n(D)\nNotwithstanding any other provision contained in this title, confidential information related to the owner of the real property may be provided to a collection agency for purposes of collecting a delinquent tax under this section. If the information is provided to a collection agency under this paragraph, the collection agency shall not disclose the information to a third party, other than the owner (or his or her representative), unless the Mayor would be authorized by law to make the disclosure. A collection agency, or employee of a collection agency, violating the provisions of this subsection shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or imprisoned for not more than 180 days, or both. All prosecutions under this paragraph shall be brought in the Superior Court of the District of Columbia on information by the Attorney General for the District of Columbia in the name of the District of Columbia.\n\n(d-2)\nIf real property tax is owing as a result of a change in classification to Class 2 Property, Class 3 Property, or Class 4 Property, the following shall apply:\n(1)\nIf the real property was transferred, the grantor shall be personally liable for the amount of the delinquent real property tax which was not paid timely during the period when the grantor owned the real property, together with interest and penalty at the same rate as provided in this chapter for the late payment of real property tax. The tax shall be considered due on the date that the total amount of real property tax was due but unpaid because of the erroneous or improper classification, and shall be collected in the manner prescribed under Chapter 44.\n(2)\nNotwithstanding paragraph (1) of this subsection, if the real property was transferred and the grantee failed to record timely a deed under § 47-1431, the real property shall be liable for the amount of the delinquent real property tax which was not paid timely, together with interest and penalty as provided in this chapter for the late payment of real property tax.\n(3)\nIn all other cases, the real property shall be liable for the amount of the delinquent real property tax which was not paid timely, together with interest and penalty as provided in this chapter for the late payment of real property tax.\n\n(d-3)\nNot Funded.\n\n(d-4)\n(1)\nIf real property changes classification to Class 1A Property as defined in subsection (c-9)(2)(A)(ii) of this section during the period:\n(A)\nOctober 1 through March 31 of the tax year, the newly reclassified Class 1A Property, or the portion thereof used exclusively for residential purposes if already improved or assessed under § 47-829, shall be taxed at the Class 1A Property tax rate for the entire tax year; or\n(B)\nApril 1 through September 30 of the tax year, the newly reclassified Class 1A Property, or the portion thereof used exclusively for residential purposes if already improved or assessed under § 47-829, shall be taxed at the Class 1A Property tax rate for the second installment only.\n(2)\nThe owner shall apply for a change of classification to Class 1A Property as defined in subsection (c-9)(2)(A)(ii) of this section and shall promptly provide complete documentation in a manner prescribed by the Chief Financial Officer to substantiate any such classification change before it shall be effective.\n(3)\nA change in classification to Class 1A Property as defined in subsection (c-9)(2)(A)(ii) of this section shall be effective beginning in the half tax year for which application is made under paragraph (2) of this subsection.\n(4)\nIf change in classification to Class 1A Property as defined in subsection (c-9)(2)(A)(ii) of this section is determined to be erroneous because the real property was not put to predominantly residential use by the earlier of either the issuance of any new or amended certificate of occupancy (temporary or permanent) for any part of the improvement thereon, or 3 years from issuance of the building permit, or the building permit expired and was not renewed within one year, the Chief Financial Officer shall reclassify and tax the real property without limitation for each tax year or half tax year in which the real property was improperly classified as Class 1A Property, subject only to subsection (d-1)(5)(A-i) of this section, if the property is determined to be Class 3 Property or Class 4 Property, or subsection (d-2) of this section. In the event of such reclassification, penalty and interest shall be added beginning from the day the correct amount of tax should have been due but not paid if the property had been properly classified.\n(5)\nWithin 45 days from the date of the notice of denial of Class 1A Property reclassification under this subsection, the owner may petition for an administrative review of the rescission or denial and appeal from a final determination thereof to the same extent as if the appeal were filed under § 47-825.01a(d)(2).\n(6)\nNotwithstanding the time limitations in paragraphs (4) and (5) of this subsection, the Chief Financial Officer, in his or her discretion, may grant an extension of time to comply or waive penalty and interest assessed pursuant to paragraph (4) of this subsection to prevent an undue hardship to the owner.\n(7)\nThe provisions of this subsection, subsection (c-9)(2)(A)(ii) of this section, and § 47-829 shall not supersede the requirement to timely file for mixed-use classification for the upcoming tax year pursuant to subsection (f) of this section, when the annual assessment for such upcoming tax year is made under § 47-824 and the certificate of occupancy (final or temporary) was issued.\n\n(e)\nRepealed.\n\n(f)\n(1)\nCommencing with the property tax year beginning July 1, 1980, and ending June 30, 1981, and for each tax year thereafter, when the uses of real property fall within more than 1 of the classes enumerated in this section, the total assessed value of the property shall be apportioned into the appropriate classes of real property as defined in this section, and each of the areas resulting from the apportionment shall be taxed at the appropriate real property tax rate.\n(2)\nFor purposes of this subsection, the Mayor shall devise a method for apportioning, by class, real property whose uses fall within more than 1 class. The Mayor may require an owner of real property to submit, at a time and in a form prescribed, such information relating to the uses of property as in the Mayor’s judgment will assist in the apportionment of property by class for real property classification purposes as required by this section.","path":["Title 47. Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]","Chapter 8. Real Property Assessment and Tax.","Subchapter II. Authority and Procedure to Establish Real Property Tax Rates."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/47-813","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"3969252fd7af44e363fa5beb9704dfda55a7df394450273c65af6c6eadea93ad","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-47-812","next":"us-dc/d.c.-code-47-814"},"notice":"GroundRules: Original legal text. Not legal advice."}