District of Columbia Administrative Code

4009 CONFIDENTIALITY 4009.1 Tax amnesty applications shall be treated as part of the return or report of the designated tax for which it relates and the information shall not be disclosed except as provided under the tax law. SOURCE: Final Rulemaking published at 34 DCR 4091, 409…

4100 GENERAL PROVISIONS 4100.1 The provisions of this chapter shall govern the payment of the toll telecommunication service tax on a telecommunication company as defined in § 2(5) of the Toll Telecommunication Service Tax Act of 1989 (which is referred to in this chapter as the …

4101 MULTISTATE TAX CREDIT 4101.1 To prevent actual multi-state taxation of the sale of toll telecommunication service under the Act, the taxpayer, upon proof that it paid a properly due excise, sales, use, or gross receipts tax in another jurisdiction on a sale that is subject t…

4102 ALTERNATE METHODS OF REPORTING 4102.1 The taxpayer subject to this section may be allowed an alternate method of reporting its monthly gross charges subject to the tax under this section upon showing to the satisfaction of the Mayor, before April 1, 1989, or thirty (30) days…

4199 DEFINITIONS 4199.1 The terms and phrases defined in the Act shall have the same meanings when used in this chapter, unless otherwise required by the context of this chapter. AUTHORITY: DC-DCMR Unless otherwise noted, the authority for this chapter is §23 of the Toll Telecomm…

4200 DECLARATORY ORDERS: PURPOSE, GENERAL RULE, AND DEFINITIONS 4200.1 Pursuant to D.C. Official Code § 2-508 (2011 Repl.), on petition of any interested person, the Chief Financial Officer may issue a declaratory order with respect to the applicability of any rule, regulation, C…

4400 BULK SALES 4400.1 The term “assets” as used in D.C. Official Code § 47-4463 means without limitation, all assets, whether real or personal, tangible or intangible, including rights to property, of a business, that transfer to a purchaser, transferee or assignee in a single t…

500 GENERAL PROVISIONS 500.1 The provisions of this chapter are adopted under authority of § 317 of the District of Columbia Real Estate Deed Recordation Tax Act of 1962, Pub. L. 87-408 (also referred to in this chapter as the “Act”), as amended (D.C. Official Code § 42-1117 (200…

501 EXEMPTIONS FROM THE RECORDATION TAX 501.1 The only allowable exemptions from the recordation tax are those enumerated in § 302 of the Act (D.C. Official Code § 42-1102) or otherwise expressly provided by statute. 501.2 The denial of an exemption applied for under the authorit…

502 PAYMENT OF THE RECORDATION TAX 502.1 The basis for the tax is the recordation of a deed and, except as otherwise provided in the Act or this chapter, the tax must be paid at the same time the deed is submitted for recordation. Deeds are required to be recorded as provided by …

503 RECORDATION TAX RETURNS 503.1 Except as otherwise specifically provided in this chapter, each deed submitted to the Recorder of Deeds for recordation on or after May 1, 1962, shall be accompanied by a return under oath, executed by all the parties to the deed. 503.2 In the ca…

504 RECORDATION OF DEEDS WITHOUT FILING A RETURN 504.1 Except as otherwise provided in this section, the following exempt deeds may be accepted for recordation without the filing of a return: (a) A deed to property acquired by the United States or the District of Columbia or by a…

505 [RESERVED] SOURCE: Commissioners' Order 62-751 effective April 26, 1962, published at 8 DCR 278 (May 14, 1962); as amended by Final Rulemaking published at 61 DCR 4717 (May 9, 2014). District of Columbia Municipal Regulations Taxation and Assessments 9 DCMR § 505 …

506 WAIVER OF THE FILING OF A RETURN 506.1 If the Deputy Chief Financial Officer determines that a party to a deed cannot file a return, the Deputy Chief Financial Officer, in his or her discretion, may waive the filing requirement for that party. The Deputy Chief Financial Offic…

507 SECURITY FOR PAYMENT OF TAX 507.1 If it is determined that a deed submitted for recordation cannot be recorded by reason of failure of the parties to file a proper return or by reason of question about the correct amount of tax, the Deputy Chief Financial Officer is authorize…

508 INSPECTION OF RETURNS AND OTHER DOCUMENTS RELATED TO DEEDS 508.1 Except as otherwise provided in the Act or this section, all returns and other documents pertaining to deeds filed with the Recorder of Deeds or the Deputy Chief Financial Officer pursuant to the Act or this cha…

509 NAKED TITLE DEEDS 509.1 Where the grantee named in a recorded deed upon which the applicable tax has been paid acted as a nominal grantee for the sole purpose of holding, on behalf of another person, naked title to the property described in the deed, a deed to that property s…

510 CONSTRUCTION LOAN AND PERMANENT LOAN DEEDS OF TRUST AND MORTGAGES 510.1 The exemption under Section 302(11) of the Act (D.C. Official Code § 42-1102(11)) is available only for a permanent loan deed of trust or mortgage that directly replaces a construction loan deed of trust …

511 DEEDS ISSUED PURSUANT TO FORECLOSURE PROCEEDINGS 511.1 Any deed which is issued pursuant to a foreclosure sale and submitted for recordation shall be subject to the tax imposed pursuant to § 303 of the Act (D.C. Official Code § 42-1103) regardless of the identity of the grant…

512 RECORDATION OF REVOCABLE TRUST DEEDS 512.1 The following deeds shall be exempt from the tax imposed by the Act: (a) a deed by a transferor that conveys bare legal title to the trustee of a revocable trust, without consideration for the transfer, where the transferor is the be…

513 UNIFORM COMMERCIAL CODE (UCC) ARTICLE 9 FILINGS 513.1 Scope These regulations are to document filing procedures for Uniform Commercial Code filings pursuant to D.C. Law 13-201 effective immediately. 513.2 Place to File A financing statement to perfect a security interest shal…

514 [RESERVED]

515 RECORDATION OF ECONOMIC INTERESTS 515.1 A transfer of an economic interest in real property located in the District shall occur upon the conveying, vesting, granting, bargaining, sale, or assignment of a controlling interest in any corporation, partnership, association, trust…

516 ENTITIES SUBJECT TO THE RECORDATION OF ECONOMIC INTERESTS ACT 516.1 Any corporation, partnership, association, trust or other unincorporated entity shall be subject to the recordation tax if it, during the twelve (12) month period immediately preceding the transfer of an econ…

517 TRANSFERS OF CONTROLLING INTERESTS 517.1 A transfer of an economic interest shall occur upon the conveyance of a controlling interest of any legal, equitable, beneficial or other ownership interest in the following: (a) The shares of stock in a corporation; (b) A partnership,…

518 AGGREGATION OF TRANSFERS 518.1 For transfers executed on or after October 1, 1989, the Deputy Chief Financial Officer shall aggregate all transfers of interests in an entity subject to the Recordation of Economic Interests Act that are made within the twelve (12) month period…

519 CONSIDERATION ALLOCABLE TO REAL PROPERTY 519.1 The deed recordation tax is imposed upon the portion of the consideration from a transfer of an economic interest that is allocable to the value of the real property held by the entity subject to the Transfer of Economic Interest…

520 MERGERS, CONSOLIDATIONS AND LIQUIDATIONS 520.1 The merger or consolidation of an entity that is subject to the Recordation of Economic Interests Act with another entity may result in a taxable transfer. Example (1): Corporation X, wholly owned by A, and which holds as its onl…

521 [RESERVED]

522 TRUSTS 522.1 A transfer of a controlling interest in a trust shall not include transfers of equitable interests between beneficiaries that occur as a result of the operation of the terms of the trust, unless circumstances show that the trust was established to avoid taxation …

523 MISCELLANEOUS 523.1 A transfer of a controlling interest from one (1) entity to another in which there is no change in ultimate ownership interest shall not be subject to the Recordation of Economic Interests Act. 523.2 New stock certificates issued to owners of record of a c…

524 REPORTING TRANSFERS 524.1 Every corporation that owns real property in the District comprising at least forty percent (40%) of its gross assets shall keep a record of the transfer of its stock and report every transfer of an interest of its stock on an income and expense form…

525 FILING REQUIREMENTS 525.1 A deed, in the form prescribed by the Deputy Chief Financial Officer, shall be filed within thirty (30) days of a transfer of an economic interest by the entity in which the transfer has occurred. 525.2 The form of deed to record transfers of economi…

526 [RESERVED] SOURCE: Final Rulemaking published at 36 DCR 8653 (December 29, 1989); as amended by Final Rulemaking published at 61 DCR 4717 (May 9, 2014). District of Columbia Municipal Regulations Taxation and Assessments 9 DCMR § 526

527 RESIDENTIAL PROPERTIES 527 The phrase “residential properties” as referenced in D.C. Official Code § 42-1103(a-4) shall have the same meaning as Class 1 Property, as defined by D.C. Official Code § 47-813(c-8)(2), or such other section under D.C. Official Code § 47-813 as may…

528 REVOCABLE TRUSTS 528.1 The term “revocable” shall mean that the grantor, settlor, transferor, creator or trustor of the trust has the right to recover property transferred to the trust and to end the trust at any time, thereby regaining absolute ownership of the trust propert…

600 GENERAL PROVISIONS 600.1 The provisions of this chapter are adopted under authority set forth in § 416 of the "District of Columbia Revenue Act of 1980" (also referred to in this chapter as the "Act"); D.C. Law 3-92 (effective Sept. 13, 1980); D.C. Code § 47-916 (1981 Ed.). 6…

601 EXEMPTIONS FROM THE TRANSFER TAX 601.1 In addition to the exemptions specifically enumerated in § 402 of the Act (D.C. Code § 47-902), the exemptions set forth in this section shall apply to the tax. 601.2 Transfers under wills and leases shall be exempt from the transfer tax…

602 PAYMENT OF THE TRANSFER TAX 602.1 The basis for the tax is the transfer of real property and, except as otherwise provided in the Act or this chapter, the tax shall be paid within thirty (30) days of the transfer, and at the same time the deed evidencing the transfer is submi…

603 TRANSFER TAX RETURNS 603.1 Except as otherwise specifically provided in this chapter, each transfer submitted to the Recorder of Deeds for recordation on or after August 1, 1980, shall be accompanied by a return under oath, executed by all the parties to the transfer. 603.2 I…

604 RECORDATION OF EXEMPT TRANSFERS WITHOUT FILING A RETURN 604.1 Except as otherwise provided in this section, the following exempt transfers may be accepted for recordation without the filing of a return: (a) Transfers of property by the United States or the District of Columbi…

605 EXTENSION OF TIME FOR FILING RETURNS 605.1 The Deputy Chief Financial Officer may, in his or her discretion, for good cause shown grant to a party to a transfer a reasonable extension of time not to exceed six (6) months for the filing of a return by that party. 605.2 The par…

606 WAIVER OF THE FILING OF A RETURN 606.1 Whenever the Deputy Chief Financial Officer determines that a party to a transfer cannot file a return, the Deputy Chief Financial Officer is authorized, in his or her discretion, to waive the requirement for the filing of a return by th…

607 SECURITY FOR PAYMENT OF TAX 607.1 Whenever it is determined that a deed evidencing transfer submitted for recordation cannot be recorded by reason of failure of the parties to file a proper return or by reason of question as to the correct amount of tax, the Deputy Chief Fina…

608 INSPECTION OF RETURNS AND OTHER DOCUMENTS RELATED TO DEEDS 608.1 Except as otherwise provided in the Act or this section, all returns and other documents pertaining to deeds evidencing transfers of real property which are filed with the Recorder of Deeds or the Deputy Chief F…

609 NAKED TITLE DEEDS 609.1 If the grantee named in a recorded deed upon which the applicable tax has been paid acted as a nominal grantee for the sole purpose of holding, on behalf of another person, naked title to the property described in the deed, a deed to that property subs…

610 TRANSFERS PURSUANT TO FORECLOSURE PROCEEDINGS 610.1 Transfers of property pursuant to foreclosure sales shall be subject to the tax imposed by § 403 of the Act (D.C. Code § 47-903) regardless of the identity of the grantee named in the deed issued pursuant to the sale, includ…

611 TRANSFERS OF REVOCABLE TRUST DEEDS 611.1 If the settlor of a revocable trust deed who retains a right of revocation exercises such right of revocation, and the trustee thereby transfers legal title from the trustee back to the settlor as beneficial owner, the transfer shall b…

612 RESIDENTIAL PROPERTIES 612 The phrase “residential properties” as referenced in D.C. Official Code § 47-903(a-4) shall have the same meaning as Class 1 Property, as defined by D.C. Official Code § 47-813(c-8)(2), or such other section under D.C. Official Code § 47-813 as may…