Washington, D.C. Transfer & Recordation Taxes

D.C. Council Approves Increase in Transfer and Recordation Taxes

On May 28, 2019, the D.C. Council unanimously approved Mayor Bowser’s $15.5 billion next fiscal year (FY 2020) budget. The Mayor’s budget and financial plan includes a significant increase to transfer and recordation taxes from the current 2.90% to 5.00% on sales of commercial and mixed-use property (or the transfer of a controlling interest in certain entities that own D.C. real property) in excess of $2 million. The new transfer and recordation taxes will become effective October 1, 2019, assuming that Congress does not block the increase before June 28, 2019. 

The new 5.00% transfer and recordation tax is significantly higher than Suburban Maryland counties, with Montgomery County under 2.85%, Prince George’s County at 2.45%, and Charles County at 2.00%, as well as Northern Virginia counties, which are at or under 0.58%.

For transfers of property valued over $400,000 and up to $2 million, deed transfer (1.45%) and recordation (1.45%) taxes in Washington will continue to total 2.90% of the purchase price or fair market value of the property. Transfer and recordation taxes are customarily split equally between the buyer and seller. 

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All information is obtained from sources recognized as reliable but Greysteel makes no guarantees as to the accuracy thereof.
Sources: Greysteel Research; D.C. Council; Goulston & Storrs PC; Kelley Drye & Warren LLP; Stroock & Stroock & Lavan LLP

 

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