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Three-Tiered Commercial Tax Rate Approved in D.C.

by Tom Branham, Washington D.C., July 2018


As we reported in a previous POER Tax Alert, many commercial property owners in the District of Columbia will be paying higher real estate taxes starting October 1, 2018 when the new 2019 budget goes into effect. It includes $178.5 million to support the Metro mass transportation system.


Initially, the D.C. Council approved a two-rate system for properties valued above and below $5 million. That has now changed to three different property tax rates.


New Rates


The current split-rate commercial property tax system will no longer exist. The new rates will apply to the entire amount of a business property's assessed value.


  Property Value Tiers

  Tax Rate

  Valued under $5 million

  $1.65 for each $100 of assessed value

  Valued at or greater than $5   million but less than $10 million

  $1.77 for each $100 of assessed value

  Valued at $10 million or more

  $1.89 for each $100 of assessed value


Unlike a property's assessed value, the new rates are not subject to appeal. This makes proactive tax planning all the more important.


POER stands ready to help manage and minimize your property taxes. Please contact me for any questions you may have regarding the specific impact of the new tax rates and/or your tax obligation.


Tom Branham

VP & Managing Consultant - DC

(571) 366-4632


Marc Bragin

Senior Account Relationship Executive
(571) 366-4636