DC Open to New Tax Assessment Policy Changes

WASHINGTON, DC—Commercial property owner's fears over potential changes to the District's tax assessment policy could be assuaged somewhat if ongoing talks with the District stay on course.

District officials are leaning towards changing its tax assessment policy next year to one based on market values rather than taking into account occupancy and rental rates in particular properties, according to the Washington Business Journal. The new policy is expected to add $10.1 billion to the District's coffers in 2015.

Earlier this year the District's largest commercial property owner organizations banded together to press the District on the rationale for the policy change. Recently members of the Apartment and Office Building Association, the D.C. Building Industry Association, and the Developer Roundtable recently met with Chief Financial Officer Jeff DeWitt and City Councilmen Muriel Bowser and Jack Evens to discuss the changes.

The DCBIA, in a notice to members, described the session a "productive discussion" and that more meetings are planned this summer to go over recommendations to change the new methodology so that assessments also reflect conditions in individual buildings and in the overall market. See story in the Washington Business Journal.