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Developers and D.C. agencies clash over transfer and recordation tax appeals process
Summary
Supporters said the Transfer and Recordation Tax Appeals bill will let buyers and sellers challenge transfer tax calculations when sales reflect distressed or related-party transactions; the Office of Tax and Revenue warned it could create duplicate appraisals, added cost, and urged a substitute to use the latest assessed value and expand transferee appeal rights.
Public witnesses including Liz De Barrows (DC Building Industry Association), Rebecca Ballard (Rooted Communities), and Dean Hunter (Small Multifamily and Rental Owners Association) urged the Committee to allow arm’s-length distressed sales to determine fair market value for transfer and recordation taxes and to create a clear appeal path for nominal or related‑party transfers. "This means that taxpayers are paying taxes on value that no 1 in the real market believes the property is worth," Liz De Barrows said, citing a downtown office sale that transacted for far less than its assessment.
Government witnesses raised competing implementation concerns. Deputy Mayor Nina Albert argued the bill is targeted and would encourage turnover of distressed office properties into new uses, saying the appeal process should "recognize current market conditions." Robert McKeown of the Office of Tax and Revenue warned the Committee that, as drafted, the bill could force duplicate appraisals and litigation: "In short, the bill would require a duplication of effort including costs associated with obtaining outside appraisals, expert witnesses and litigation." OTR offered a substitute that would use the latest upcoming assessed value and expand transferee appeal rights; the Committee sought follow-up with RIPTAC and further drafting.
