NOTICE OF FINAL RULEMAKING
The Deputy Chief Financial Officer of the District of Columbia Office of Tax and Revenue (OTR), of the Office of the Chief Financial Officer, pursuant to the authority set forth in D.C. Official Code §§ 47-874 and 47-1010 (2015 Repl.), Section 201(a) of the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (120 Stat. 2019, Pub. L. 109-356; D.C. Official Code § 1-204.24d (2016 Repl.)), and the Office of the Chief Financial Officer Financial Management and Control Order No. 00-5, effective June 7, 2000, hereby gives notice of the final action to amend Chapter 3 (Real Property Taxes) of Title 9 (Taxation and Assessments) of the District of Columbia Municipal Regulations (DCMR).
The purpose of this rulemaking is to amend Section 313 (Payment of Real Property Tax) to define hotels and motels for purposes of the June 30, 2020 real property tax payment deadline applicable to such entities, and to provide for an equivalent deadline relating to possessory interest taxes owed by such entities.
The rulemaking was published as emergency and proposed rulemaking in the D.C. Register on March 27, 2020 at 67 DCR 3599. No comments were received and there has been no change to the rule as proposed. This rule was adopted as final on June 26, 2020 and will be effective upon publication in the D.C. Register.
Chapter 3, REAL PROPERTY TAXES, of Title 9 DCMR, TAXATION AND ASSESSMENTS, is amended as follows:
New Subsection 313.6, of Section 313, PAYMENT OF REAL PROPERTY TAX, is added to read as follows.
313.6
(a) For purposes of D.C. Official Code § 811(b), the terms “hotel” and “motel” mean a real property any part of which is classified for tax year 2020 as Class 2 Property under § 47-813, is commercially improved and occupied, and is a hotel, motel, inn, or other place which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.
(b) A hotel or motel, as defined herein, may pay its first half tax year 2020 real property tax installment through June 30, 2020, and such payment made by such date shall be timely, to the extent it brings the tax liability current. Penalty and interest owed for prior periods are unaffected by the Act. No payment may be designated to a particular period, and a payment is subject to the application of payments under this section. Further, a hotel or motel may not benefit from penalty and interest tax relief relating to sales and use taxes, as provided under D.C. Official Code § 47-4221(d).
(c) Possessory interest tax, owing by the lessee of immune or exempt government real property in lieu of real property tax, shall benefit from the same extension due date and under the same terms and limitations as real property tax owed by hotels and motels as defined under this subsection.