Vacant Property Tax, ‘Economic Interest Tax' on Co-operatives
Focus Now On "Blighted" -- But Wait For Final Release
From October 1, 2008 to September 30, 2009, the District of Columbia taxed vacant properties at $10 per $100 of assessed value (rather than the residential tax rate of $.85 per $100 assessed value) , unless property owners applied for one of several exemptions within 30 days of the property becoming vacant. As of October 1, 2009, DC has changed its focus to ‘blighted' property, not merely vacant property. However, since DC has not released the relevant amendments and legislative language to the public, owners should continue to treat their ‘vacant' property as requiring a vacancy exemption or risk being re-classed at the higher tax rate.
Co-operatives Sales and Transfers Now Taxed
In another change, buyers of co-operatives in Washington had been exempt from paying transfer and recordation taxes because ownership of shares in a co-operative corporation was viewed as a security interest and not ownership of real property. This change is effective October 1, and the DC government has begun charging an "economic interest tax" on the sale and transfer of co-operatives. The rates are 1.1% on co-operatives with a market value of less than $400,000 and 1.45% for co-ops valued at $400,000 and higher.
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F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie's Great Estates, Top 1% Long & Foster Agents, President's Club 2008
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland 20816
Tel: 301-229-4000 Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409
Email: HSlowinski@LNF.com · Web Site: www.HillSlowinski.com
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