The Council of the District of Columbia recently enacted the Fiscal Year 2009 Budget Support Act of 2008 (Act 17-0419). Of interest to the District of Columbia commercial real estate industry, the legislation increases the recordation tax on deeds evincing a transfer of an economic interest in real property to 2.9%. Previously, such transfers of economic interests were taxed at a rate of 2.2%. The higher rate is effective starting October 1, 2008.

In order to facilitate implementation of this change, the Office of Tax and Revenue, Real Property Tax Administration, Recorder of Deeds Division will adhere to the following policy:

  • Any economic interest deed executed prior to October 1, 2008 but submitted after that date will be taxed at the rate in effect at the time of execution.
  • For the purpose of determining the tax rate, a deed will be deemed executed on the date the grantor’s signature is acknowledged and notarized.