Code of the District of Columbia

§ 2–1215.15. Collection and disbursement of BID taxes.

(a) Within 10 days of its date of registration, and 90 days in advance of the beginning of each fiscal year, each BID shall provide the CFO with a preliminary BID tax roll, which shall include, for each property subject to the relevant BID tax, the square number, the lot number, the name of the BID, the period of time for the BID tax, and the amount of the BID tax for that property for that period of time. In addition to the preliminary tax roll, the BID shall also provide supporting information which describes the information relied upon by the BID in preparing the preliminary tax roll. The supporting information shall be based on information provided to the BID by the Office of Taxation and Revenue and any other reliable source. The preliminary BID tax roll and the supporting information shall be prepared in such form as may be prescribed by regulation by the CFO. In the event that a BID fails to provide the preliminary BID tax roll and the supporting information within the time period specified by this subsection, the BID taxes shall be collected at the time of the next regularly scheduled tax bill.

(b) During a control year, the CFO, and in any other year, the Mayor shall examine the preliminary BID tax roll and backup information and shall make any changes it deems are required by this subchapter. During a control year, the CFO, and in any other year, the Mayor, shall certify a final BID tax roll no later than 30 days prior to the billing dates described in subsection (e) of this section.

(c) Except as otherwise provided by this subchapter, BID taxes shall be collected by the CFO during a control year, and by the Mayor in any other year. Except as otherwise provided by this subchapter, BID taxes shall be collected in the same manner as real property taxes are collected. The CFO during a control year, and the Mayor in any other year, may contract with a financial institution having assets in excess of $50 million or a BID (if the BID tax is related to such BID) to perform services for the District in connection with the collection and distribution of BID taxes.

(d) BID taxes shall be effective as of the date a BID is registered or deemed registered by the Mayor pursuant to § 2-1215.06, except for BID taxes that become effective pursuant to § 2-1215.04(f) or (g). Any changes to the BID tax adopted pursuant to § 2-1215.08 shall be effective as of the first day of the subsequent fiscal year. BID taxes related to real properties affected by a geographic or taxable real property tax base expansion of the BID shall be effective as of the date the expansion becomes effective.

(e) BID taxes shall be payable in advance and shall cover the 6 months following the due date of the billing described by paragraph (1) of this subsection; provided however, in the case of the period of time between the effective date of a BID’s registration and the last day of the applicable 6-month period, BID taxes shall be payable as described by paragraph (2) of this subsection.

(1) BID taxes shall be due and payable semiannually in 2 equal installments, the first being paid on or before September 15 preceding the real property tax year for the period October 1 through March 31, and the second installment to be paid on or before March 31 of the real property tax year for the period April 1 through September 30.

(2) BID taxes for the period of time between the effective date of a BID’s registration and the last day of the applicable 6-month period shall be collected through a special bill, if the relevant BID application requests such a special bill, to be mailed by the District or its contractee within 30 days of the effective date of the BID tax with such special bill due for payment 45 days from the date of such special bill, or if the BID application does not request such a special bill, the BID taxes for such period of time shall be billed at the time of the next practicable regularly scheduled property tax bill pursuant to paragraph (1) of this subsection, along with any other BID taxes collectible at the time of such billing.

(f) If at any time after the dates provided by subsection (e) of this section any BID tax is not paid within the time prescribed, there shall be added to the BID tax a penalty of 10% of the unpaid amount plus simple interest on the unpaid amount at the rate of 1.5% per month or portion of a month until the BID tax is paid.

(g) If any BID tax shall remain unpaid after the expiration of 60 days from the date such tax became due, the property subject to such BID tax may be sold at the next ensuing tax sale in the same manner and under the same conditions as property sold for delinquent real property taxes, if such BID taxes with interest and penalties thereon shall not have been paid in full prior to said sale. If an accounting is made in accordance with, and subject to, § 47-1340(f), of the District of Columbia Code, the proceeds from such sale shall be applied towards such delinquent BID taxes together with interest and penalties thereon, including costs associated with such sale; provided, that the proceeds from such sale shall be applied first to any delinquent real property taxes (and penalties and costs associated therewith), and then, to the extent a required accounting is made in accordance with § 47-1340(f), in the following order of priority: any delinquent water and sewer charges; any lien for tenant relocation expenses under § 42-3531.15; and any delinquent litter control nuisance fines, in accordance, respectively, with §§ 47-1303.4 [47-1303.04], 34-2407.02, 34-211, and 8-807. The proceeds shall then be applied towards any other delinquent tax, aside from the BID tax, owed by the owner of such property. The proceeds due for such delinquent BID taxes with interest and penalties thereon shall then be delivered to the collection agent for deposit into the relevant special account within 30 business days of its receipt by the District or the BID pursuant to § 2-1215.17.

(g-1)(1) Notwithstanding subsection (g) of this section, a BID tax resulting from a possessory interest shall be collected in accordance with Chapter 44 of Title 47 and the holder of the possessory interest shall be liable.

(2) For periods beginning after September 30, 2003, the BID tax resulting from the possessory interest shall be in proportion to the pro rata share of the real property, as determined by the Chief Financial Officer, occupied by holder of the possessory interest where the BID tax is based on assessed value, net rentable area, gross building area, square footage, or number of hotel rooms. BID taxes based on a per unit basis shall not be apportioned.

(3) Repealed.

(h) The Treasurer of the District shall establish a special account of the District for each BID registered pursuant to § 2-1215.06. Each such special account shall be established by the Treasurer within 20 days of the date of the BID’s registration pursuant to § 2-1215.06.

(1) Within 10 business days of the date of establishment of any such special account, the Treasurer shall contract with the existing real property tax collection agent of the District to collect the BID taxes and to administer each special account created pursuant to this subsection for such period of time that said tax collection agent is responsible for collecting the real property taxes of the District. Upon the termination of any such contract, the District shall contract with the successor tax collection agent of the District to collect the BID taxes and to administer each special account created pursuant to this subsection for such period of time that said tax collection agent is responsible for collecting the real property taxes of the District. Such transactions shall not be subject to Chapter 2 of this title.

(2) Each special account created pursuant to this section shall consist solely of funds deposited pursuant to this section, which funds shall at no time be commingled with the general fund or any other fund of the District. The following shall be deposited into the special account associated with a BID within 3 business days of its receipt by the collection agent:

(A) All BID taxes collected pursuant to subsections (a) through (e) of this section;

(B) All penalties and interest collected pursuant to subsection (f) of this section; and

(C) Any proceeds from collections pursuant to subsection (g) of this section.

(3) The funds received as payment of a BID tax shall be applied first towards any real property taxes owed and to any delinquent real property taxes (and penalties and costs associated therewith) in the manner described by § 47-1303.04(g), before such payment is applied to the BID tax and any associated penalty and interest.

(i) The District may recover costs from the special accounts only as specifically provided by this subsection. Any recovery of funds from a special account shall be only by payment from the collection agent to the District.

(1) The collection agent shall make a payment to the District equal to the amount of any tax refund associated with such special account that the District documents is required pursuant to District law; provided, that to the extent that a special account lacks the funds needed to make a payment pursuant to this paragraph, the collection agent shall make said payment to the District as soon as sufficient funds are deposited into such special account; provided further, that a BID corporation shall have standing to participate in any administrative proceeding or to intervene in any judicial proceeding for the refund of BID taxes associated with such BID.

(2) The collection agent shall make a monthly accounting to each BID of any payments to the District from the special account associated with that BID.

(j) Each month, prior to the 5th day of the month, the collection agent shall make a payment to the BID associated with the special account, which payment shall consist of all of the funds in such account as of the end of the final day of the preceding calendar month; provided, that the collection agent shall first provide for the payment of costs pursuant to subsection (i) of this section; provided further, that the collection agent shall withhold a portion of such funds, not to exceed 2% of the total annual BID taxes associated with such account when the BID taxes are based on assessed value or 1/2 of 1% of the total annual BID taxes associated with such account when BID taxes are based on square footage or per building, that the Treasurer of the District finds is needed as a reserve fund to pay any tax refund that may be required pursuant to District law.

(k) Each month, the collection agent shall provide a statement regarding the transactions in such special account to the Treasurer of the District and to the BID associated with such special account.

(l)(1) No funds may be withdrawn from a special account established pursuant to this section except as specifically provided in subsections (i) and (j) of this section. The District and the collection agent shall not pledge the funds in any special account established pursuant to this section under any circumstances, except that the funds in any such account shall be pledged if and when requested by the BID associated with such account as security for bonds or other borrowing by such BID.

(2) Authority to obligate or expend any taxes collected pursuant to this subchapter shall be subject to the appropriations process.

(m) The BID shall be the beneficial owner of the funds in the special account associated with that BID.


(May 29, 1996, D.C. Law 11-134, § 15, 43 DCR 1684; renumbered as § 16, Oct. 8, 1997, D.C. Law 12-26, § 2, 44 DCR 4320; Apr. 12, 2000, D.C. Law 13-91, § 127, 47 DCR 520; June 9, 2001, D.C. Law 13-305, § 508(a), 48 DCR 334; Oct. 22, 2012, D.C. Law 19-180, § 2(a), 59 DCR 9421; Dec. 4, 2014, D.C. Law 20-141, § 202, 61 DCR 7763; Feb. 26, 2015, D.C. Law 20-155, §§ 7103(b) and 7104, 61 DCR 9990; Feb. 26, 2015, D.C. Law 20-161, § 2(m), 61 DCR 10741; Oct. 22, 2015, D.C. Law 21-36, §§ 7027, 7102(b), 62 DCR 10905; Feb. 18, 2017, D.C. Law 21-211, § 4, 63 DCR 15307.)

Prior Codifications

1981 Ed., § 1-2285.

Section References

This section is referenced in § 2-1215.09 and § 2-1215.17.

Effect of Amendments

D.C. Law 13-91, in subsec. (g), in the second sentence, substituted “47-1303.4 [§ 47-1303.04, 2001 Ed.] ” for “47-1304.4”; and in par. (h)(3), substituted “47-1303.4(g)” for “47-1304.4(g)”.

D.C. Law 13-305 rewrote the second sentence of subsec. (g) which had read: “The proceeds from such sale shall be applied towards such delinquent BID taxes together with interest and penalties thereon, including costs associated with such sale; provided, that the proceeds from such sale shall be applied first towards any delinquent real property taxes (and penalties and costs associated therewith), and then towards any delinquent water and sewer charges, and then towards any delinquent litter control nuisance fines, in accordance, respectively, with § 47-1303.04, §§ 34-2407.02 and 34-2110, and § 8-807.”

The 2012 amendment by D.C. Law 19-180 rewrote (e)(1).

The 2014 amendment by D.C. Law 20-141, repealed before its effective date, would have substituted “plus simple interest on the unpaid amount at the rate of 1%” for “plus interest on the unpaid amount at the rate of 1 1/2%” in (f).

The 2015 amendment by D.C. Law 20-155 repealed D.C. Law 20-141; and substituted “plus simple interest on the unpaid amount at the rate of 1%” for “plus interest on the unpaid amount at the rate of 1 1/2%” in (f).

The 2015 amendment by D.C. Law 20-161 rewrote the last sentence in (d); and added (g-1).

The 2015 amendment by D.C. Law 21-36 substituted “plus simple interest on the unpaid amount at the rate of 1.5%” for “plus interest on the unpaid amount at the rate of 1%” in (f); added “For periods beginning after September 30, 2003” in (g-1)(2); and repealed (g-1)(3).

Applicability

Section 7023 of D.C. Law 22-33 repealed § 5 of D.C. Law 21-211. Therefore the changes made to this section by D.C. Law 21-211 have been implemented.

Applicability of D.C. Law 21-211: § 5 of D.C. Law 21-211 provided that the creation of this section by § 4 of D.C. Law 21-211 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Emergency Legislation

For temporary (90 days) repeal of § 5 of D.C. Law 21-211, see § 7023 of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) repeal of § 5 of D.C. Law 21-211, see § 7023 of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 days) amendment of this section, see § 201 of the Residential Real Property Equity and Transparency Congressional Review Emergency Amendment Act of 2014 (D.C. Act 20-409, Aug. 1, 2014, 61 DCR 8281).

For temporary (90 days) amendment of this section, see § 7113(b) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 2(m) of the Business Improvement Districts Emergency Amendment Act of 2014 (D.C. Act 20-435, October 7, 2014, 61 DCR 10717, 20 STAT 4154).

For temporary (90 days) amendment of this section, see § 7103(b) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 7103(b) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 2(m) of the Business Improvement Districts Congressional Review Emergency Amendment Act of 2014 (D.C. Act 20-582, January 13, 2015, 62 DCR 1269, 21 STAT 735).

For temporary (90 days) amendment of this section, see §§ 7016(w) and 7072(b) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 day) amendment of section, see § 2 of the Business Improvement Districts Temporary Amendment Act of 1997 (D.C. Law 12-23, September 23, 1997, law notification 44 DCR 5762).

For temporary (225 day) amendment of section, see § 8(a) of the Real Property Tax Clarity and Litter Control Administration Temporary Amendment Act of 2001 (D.C. Law 14-8, June 13, 2001, law notification 48 DCR 5916).

For temporary amendment of section, see § 2 of the Business Improvement Districts Emergency Amendment Act of 1997 (D.C. Act 12-89, June 19, 1997, 44 DCR 3747), and § 2 of the Business Improvement Districts Congressional Review Emergency Amendment Act of 1997 (D.C. Act 12-146, August 12, 1997, 44 DCR 5054).

For temporary (225 days) amendment of this section, see § 2(s) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).

Editor's Notes

D.C. Law 20-141 became effective on Dec. 4, 2014, but was repealed prior to its effective date by emergency D.C. Act 20-377, § 7114, eff. July 14, 2014, 61 DCR 7598, by emergency D.C. Act 20-449, § 7104, eff. October 10, 2014, 61 DCR 10915, and by D.C. Law (Act 20-155), § 7104, 61 DCR 9990.