General

The District of Columbia has had a consistent property tax rate schedule for years.  Beginning on October 1st, 2018, that schedule is changing for the 2019 fiscal year, which has tax bills due in March 2019 and September 2019.  Commercial properties used to be taxed at a rate of $1.65 per $100 for the first $3,000,000 of assessment, and then at a rate of $1.85 per $100 for any value over $3,000,000.  The new schedule applies a flat rate for the entire assessment.  Which rate gets applied is determined by the total assessment.  Properties with assessed values up to $5,000,000 will be taxed at a flat rate of $1.65 per $100.  Properties with assessed values between $5,000,001 and $10,000,000 will be taxed at a flat rate of $1.77 per $100.  Properties with assessed values $10,000,001 and greater will be taxed at a flat rate of $1.89 per $100.

Comparing these new rates to the prior rates, commercial parcels with values between $3,000,000 and $5,000,000, and between $7,500,000 and $10,000,000 will end up paying less in real estate property taxes, while parcels with values between $5,000,000 and $7,500,000, and over $10,000,000 will end up paying more in real estate property taxes.  Property owners should adjust their tax budgets accordingly.  Remember, this is per parcel, so multi-parcel properties with a total value equal to that of a single parcel property will pay less in real estate property taxes if any of the parcels are valued below $10,000,000.