Code of the District of Columbia

Chapter 47. Exemptions and Abatements Approval Requirements.


§ 47–4701. TAFA requirements.

(a) A bill introduced in the Council that grants an exemption or abatement of a tax imposed by this title or by § 42-1103, unless the exemption or abatement is one of general applicability, shall not receive a Council hearing until a completed tax abatement financial analysis (“TAFA”) has been provided to the Council and made available to the public.

(b)(1) The TAFA shall include:

(A) The terms of the exemption or abatement;

(B) The estimated annual value of the exemption or abatement;

(C) The purpose for which the grantee seeks the exemption or abatement;

(D) A summary of the proposed community benefits to be provided by the grantee of the exemption or abatement, including, if applicable, the number of jobs that may be created, delineated in accordance with paragraph (2)(A)(iv), (v) and (vi) of this subsection;

(E) If, in the opinion of the Chief Financial Officer, it is unlikely that the grantee’s stated purpose could be accomplished without the proposed exemption or abatement:

(i) An estimate of the amount of exemption or abatement necessary to accomplish the purpose;

(ii) Efforts by the grantee to obtain alternate financing; and

(iii) Any factors that limit the ability of the grantee to obtain adequate financing; and

(F) A financial analysis prepared by the Office of the Chief Financial Officer, which shall consist of:

(i) For existing buildings, a review and analysis of the financial condition of the recipient of the proposed exemption or abatement and an advisory opinion stating whether or not it is likely that the recipient could be reasonably expected to meet its fiscal needs without the proposed exemption or abatement;

(ii) For new developments, a review and analysis of the financial condition of the recipient of the proposed exemption or abatement and of the financing proposal submitted by the recipient and an advisory opinion stating whether or not it is likely that the project could be financed without the proposed exemption or abatement;

(iii) For exemptions or abatements related to a person or group of persons that can be readily identified, a review and analysis of the financial condition of the recipient of the proposed exemption or abatement and an advisory opinion stating whether or not it is likely that the recipient could be reasonably expected to meet its fiscal needs without the proposed exemption or abatement. If individual financial information is not available, the requirements of this sub-subparagraph may be met through an advisory opinion on whether the proposed exemption or abatement can reasonably be expected to meet the proposed public policy goal[;and]

(iv) For exemptions or abatements related to a category or group of property owners or taxpayers that cannot be readily identified, a review and analysis of the public policy goal intended to be addressed, if applicable, by the exemption or abatement, including whether the exemption or abatement is appropriately targeted and likely to achieve the intended goal.

(2)(A) In addition to the requirements described in paragraph (1) of this subsection, where applicable, the TAFA shall include in the summary of the proposed community benefits:

(i) The number of affordable housing units to be developed;

(ii) For what level of Area Median Income, as defined by § 47-858.01(1)(A)(i), the units will be affordable;

(iii) The assessed financial value of the subsidy, which shall be measured as the difference between the market rate of a comparable unit within the same neighborhood and the rate that is being charged as affordable housing;

(iv) The number of jobs that will be created, delineated by status as to whether a job is:

(I) Permanent;

(II) Temporary;

(III) Full-time; or

(IV) Part-time;

(v) The estimated wages and benefits for each job created;

(vi) Any commitment made to hiring District residents; and

(vii) A description of any other public policy goal that the exemption or abatement is meant to address, including expected results.

(B) The summary shall state which community benefits are already required by law, such as inclusionary zoning, the community amenities that have already been negotiated as part of a planned-unit-development approval, and the requirements or incentives already included in law or regulation, such as environmental standards.


(Sept. 14, 2011, D.C. Law 19-21, § 7142(b), 58 DCR 6226; Sept. 26, 2012, D.C. Law 19-171, § 114(f), 59 DCR 6190; Dec. 24, 2013, D.C. Law 20-61, § 7162(a), 60 DCR 12472; June 26, 2014, D.C. Law 20-117, § 16, 61 DCR 2032.)

Section References

This section is referenced in § 47-4703.

Effect of Amendments

The 2012 amendment by D.C. Law 19-171 validated a previously made technical correction in (b)(3)(A)(ii).

The 2013 amendment by D.C. Law 20-61 rewrote the section.

The 2014 amendment by D.C. Law 20-117 rewrote (b)(1)(F)(iii) and (iv); and substituted “where applicable” for “for a bill that grants an exemption or abatement to a housing development” in the introductory language of (b)(2)(A).

Emergency Legislation

For temporary (90 day) amendment of this section, see §§ 2(b), 3(b), and 6 of the Fiscal Year 2014 Budget Support Technical Clarification Emergency Amendment Act of 2013 (D.C. Act 20-180, October 4, 2013, 60 DCR 1949).).

For temporary (90 days) amendment of this section, see § 7162(a) of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of this section, see § 7162(a) of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

Temporary Legislation

For temporary (225 days) amendment of section, see § 3 of the Fiscal Year 2014 Budget Support Technical Clarification Temporary Amendment Act of 2013 (D.C. Law 20-56, December 13, 2013, 60 DCR 15165).

Short Title

Short title: Section 7141 of D.C. Law 19-21 provided that subtitle O of title I of the act may be cited as “Exemptions and Abatements Information Requirements Act of 2011”.

Section 7161 of D.C. Law 20-61 provided that Subtitle P of Title VII of the act may be cited as the “Tax Abatement Financial Analysis Requirements Act of 2013”.

Editor's Notes

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.

Applicability of D.C. Law 20-117: Section 18 of D.C. Law 20-117 provided that the act shall apply as of October 1, 2013.


§ 47–4702. Annual certification of continuing eligibility for exemptions and abatements from real property tax.

(a) To the extent allowable by law, on or before April 1 of each year, beginning in 2012, and every year thereafter, any nonprofit organization or business entity owning property receiving a real property tax exemption or abatement pursuant to Chapter 10 (other than property exempt under § 47-1002(1), (2), (3), or (21)) or Chapter 46 of this title, regardless of when the exemption or abatement was received, shall be required to file an annual report, under oath, with the Office of the Chief Financial Officer providing:

(1) The lot and square, parcel, or reservation number of the real property and certifying that the real property has been used during the preceding real property tax year for the purpose for which the exemption or abatement was granted; and

(2) A description of the community benefits provided pursuant to the provisions of the act granting the tax exemption or abatement, or an update on the progress of the community benefits identified in the act granting the tax exemption or abatement.

(b) Failure to certify that the property was still eligible for the exemption or abatement based on the use of the property as required by subsection (a)(1) of this section shall result in a termination of the exemption or abatement as of the beginning of the tax year in which the report is required to be filed. If the report is not filed timely, the Office of the Chief Financial Officer shall assess a penalty of $250. This section shall not apply to a property owner that is required to file an annual report pursuant to § 47-1007.

(c) Upon written application by the property owner filed on or before April 1 of any year, the Office of the Chief Financial Officer may grant a reasonable extension of time for filing the report required under subsection (a) of this section. For reasonable cause, the Office of the Chief Financial Officer may abate the penalty provided under subsection (b) of this section as well as the tax, penalty, and interest resulting from the failure to file the report timely.


(Sept. 14, 2011, D.C. Law 19-21, § 7142(b), 58 DCR 6226; Dec. 24, 2013, D.C. Law 20-61, § 7157(b), 60 DCR 12472.)

Section References

This section is referenced in § 47-4703.

Effect of Amendments

The 2013 amendment by D.C. Law 20-61 rewrote the section.

Emergency Legislation

For temporary (90 day) amendment of section, see § 13(b) of Revised Fiscal Year 2012 Budget Support Technical Clarification Emergency Amendment Act of 2011 (D.C. Act 19-157, October 4, 2011, 58 DCR 8688).

For temporary amendment of section, see § 108(b) of the Fiscal Year 2013 Budget Support Technical Clarification Emergency Amendment Act of 2012 (D.C. Act 19-482, October 12, 2012, 59 DCR 12478).

For temporary amendment of section, see § 108(b) of the Fiscal Year 2013 Budget Support Technical Clarification Congressional Review Emergency Amendment Act of 2012 (D.C. Act 19-604, January 14, 2013, 60 DCR 1045), applicable as of January 10, 2013.

For temporary (90 days) amendment of this section, see § 7157(b) of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of this section, see § 7157(b) of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

Temporary Legislation

Section 13(b) of D.C. Law 19-53 amended the section to read as follows:

“(2) A description of the community benefits provided pursuant to the provisions of the act granting the tax exemption or abatement, or an update on the progress of the community benefits identified in the associated act granting the tax exemption or abatement.

“(c) Upon written application by the property owner filed on or before April 1 of any year, the Office of the Chief Financial Officer may grant a reasonable extension of time for filing the report required under subsection (a) of this section. For reasonable cause, the Office of the Chief Financial Officer may abate the penalty provided under subsection (b) of this section as well as the tax, penalty, and interest resulting from the failure to file the report timely.”.

Section 15(b) of D.C. Law 19-53 provided that the act shall expire after 225 days of its having taken effect.

Section 108(b) of D.C. Law 19-226 amended this section to read as follows:

§ 47-4702. Annual certification of continuing eligibility for exemptions and abatements from real property tax.

“(a) To the extent allowable by law, on or before April 1 of each year, beginning in 2012, and every year thereafter, any nonprofit organization or business entity owning property receiving a real property tax exemption or abatement pursuant to Chapter 10 (other than property exempt under § 47-1002(1), (2), (3), or (21)) or Chapter 46 of this title, regardless of when the exemption or abatement was received, shall be required to file an annual report, under oath, with the Office of the Chief Financial Officer providing:

“(1) The lot and square, parcel, or reservation number of the real property and certifying that the real property has been used during the preceding real property tax year for the purpose for which the exemption or abatement was granted; and

“(2) A description of the community benefits provided pursuant to the provisions of the act granting the tax exemption or abatement, or an update on the progress of the community benefits identified in the act granting the tax exemption or abatement.

“(b) Failure to certify that the property was still eligible for the exemption or abatement based on the use of the property as required by subsection (a)(1) of this section shall result in a termination of the exemption or abatement as of the beginning of the tax year in which the report is required to be filed. If the report is not filed timely, the Office of the Chief Financial Officer shall assess a penalty of $250. This section shall not apply to a property owner that is required to file an annual report pursuant to § 47-1007.

“(c) Upon written application by the property owner filed on or before April 1 of any year, the Office of the Chief Financial Officer may grant a reasonable extension of time for filing the report required under subsection (a) of this section. For reasonable cause, the Office of the Chief Financial Officer may abate the penalty provided under subsection (b) of this section as well as the tax, penalty, and interest resulting from the failure to file the report timely.”

Section 402(b) of D.C. Law 19-226 provided that the act shall expire after 225 days of its having taken effect.

Short Title

Section 7151 of D.C. Law 20-61 provided that Subtitle O of Title VII of the act may be cited as the “Tax Clarification Amendment Act of 2013”.

Editor's Notes

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.


§ 47–4703. Chief Financial Officer guidance.

For the preparation of the financial analysis required by § 47-4701(b)(1)(F) and the annual certification required by § 47-4702, the Chief Financial Officer shall set forth guidance regarding the collection of information necessary to implement these sections.


(Sept. 14, 2011, D.C. Law 19-21, § 7142(b), 58 DCR 6226; Dec. 24, 2013, D.C. Law 20-61, § 7162(b), 60 DCR 12472.)

Effect of Amendments

The 2013 amendment by D.C. Law 20-61 substituted “§ 47-4701(b)(1)(F)” for “§ 47-4701(b)(4).”

Emergency Legislation

For temporary (90 day) addition of sections, see §§ 13(c), 14 of Revised Fiscal Year 2012 Budget Support Technical Clarification Emergency Amendment Act of 2011 (D.C. Act 19-157, October 4, 2011, 58 DCR 8688).

For temporary addition of § 47-4704, concerning the applicability of this chapter, see § 108(a) and (c) of the Fiscal Year 2013 Budget Support Technical Clarification Emergency Amendment Act of 2012 (D.C. Act 19-482, October 12, 2012, 59 DCR 12478).

For temporary addition of § 47-4704, concerning the applicability of the chapter, see § 108(c) of the Fiscal Year 2013 Budget Support Technical Clarification Congressional Review Emergency Amendment Act of 2012 (D.C. Act 19-604, January 14, 2013, 60 DCR 1045), applicable as of January 10, 2013.

For temporary (90 days) amendment of this section, see § 7162(b) of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of this section, see § 7162(b) of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

Temporary Legislation

Section 13(c) of D.C. Law 19-53 added a section to read as follows: “§ 47-4704. Applicability. ”This chapter shall apply as of October 1, 2011.“.

Section 15(b) of D.C. Law 19-53 provided that the act shall expire after 225 days of its having taken effect.

Section 108(c) of D.C. Law 19-226 added section 47-4704 to read as follows:

§ 47-4704. Applicability.

“This chapter shall apply as of October 1, 2011.”

Section 402(b) of D.C. Law 19-226 provided that the act shall expire after 225 days of its having taken effect.

Section 4(b) of D.C. Law 19-235 provided that the act shall expire after 225 days of its having taken effect.

Short Title

Section 7161 of D.C. Law 20-61 provided that Subtitle P of Title VII of the act may be cited as the “Tax Abatement Financial Analysis Requirements Act of 2013”.

Editor's Notes

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.


§ 47–4704. Applicability.

This chapter shall apply as of October 1, 2011.


(Dec. 24, 2013, D.C. Law 20-61, § 7157(c), 60 DCR 12472.)

Emergency Legislation

For temporary (90 days) addition of this section, see § 7157(c) of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) addition of this section, see § 7157(c) of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

Short Title

Section 7151 of D.C. Law 20-61 provided that Subtitle O of Title VII of the act may be cited as the “Tax Clarification Amendment Act of 2013”.

Editor's Notes

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.