Isn’t DC Real Estate Taxed Enough? Council Looks For New Revenue In a Struggling Market Sector
Section: Market Decoder
Author: Susan Isaacs, Washington DC Real Estate Strategist
DC is considering whether to impose a new tax on pied-à-terre owners; people who own homes in the District but don’t use them as their primary residences.
There isn’t even a bill yet. A DC Council hearing is scheduled for October 16, which makes this the right time to ask some fairly basic questions before anyone starts debating tax rates.
Who, exactly, would qualify as a pied-à-terre owner? How would DC identify them? What would it cost to administer and enforce the tax? And what happens if a policy intended to raise revenue instead pushes some buyers away from a condo market that is already struggling?
New York offers a useful, if flawed, comparison, but DC isn’t New York. Our housing stock, tax structure, condo market and enforcement capabilities are different.
I’ve taken a deeper look at the proposal, including the potential revenue, enforcement problem, privacy questions and possible consequences for DC real estate.
Read the full analysis on Real Estate in the District →