DC Transfer and Recordation Taxes Increased to 5%May 31, 2019 – Advisories
As anticipated, on Tuesday May 28, 2019, the DC Council unanimously approved increasing transfer and recordation taxes from 2.9% to 5% on transactions of over $2 million effective October 1, 2019 (assuming Congress does not intervene before June 28, 2019). The proposed increase would apply both to direct transfers of commercial real property and to transfers of economic interests in certain entities that own commercial real property. Also, the recordation tax payable on applicable DC deeds of trust would increase from 1.45% to 2.5%.
Please reach out to John Ratino for further information regarding this recent legislation change.