(1) At the time a deed, including a lease or ground rent for a term (with renewals) that is at least 30 years, is submitted for recordation, it shall be taxed at the rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section), as follows:
(A) A deed that conveys title to real property in the District shall be taxed at a rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section) applied to the consideration for the deed; provided, that if there is no consideration for a transfer or if the consideration for the transfer is nominal, the rate shall be applied to the fair market value of the real property, as determined by the Mayor.
(i) If there is a lease or ground rent for a term (with renewals) that is at least 30 years, the recordation tax shall be based upon the average annual rent over the term of the lease, including renewals, capitalized at a rate of 10%, plus any additional consideration payable; provided that the amount to which the rate is applied shall not exceed the fair market value of the real property covered by the interest transferred.
(ii) If the average annual rent of the lease or ground rent for a term (including renewals) that is at least 30 years cannot be determined, the recordation tax will be based on the greater of:
(I) One hundred and five percent of the minimum average annual rent ascertainable from the terms of the lease, capitalized at a rate of 10%, plus any additional consideration payable; or
(II) One hundred and fifty percent of the assessed value of the real property covered by the interest transferred.
(iii) If there is no consideration for a lease or ground rent or the consideration is nominal, the rate of tax shall be applied to the fair market value of the real property covered by the lease or ground rent, as determined by the Mayor.
(2) Notwithstanding paragraph (1) of this subsection, at the time it is submitted for recordation, a deed that evidences a transfer of an economic interest in real property shall be taxed at the rate of 2.9% of the consideration allocable to the real property; provided, that, beginning October 1, 2009, in the case of a transfer of an economic interest in a cooperative housing association that is in connection with a grant, transfer, or assignment of a proprietary leasehold or other proprietary interest where the consideration allocable to the real property is less than $400,000, the rate of tax shall be 2.2%.
(A) Notwithstanding paragraph (1) of this subsection, at the time a security interest instrument is submitted for recordation, it shall be taxed at a rate of 1.1% (to complete the calculation of total recordation tax due at time of recording, see also additional tax in subsection (a-4) of this section) of the total amount of debt incurred that is secured by the interest in real property; provided, that if the existing debt is refinanced, the rate shall be applied only to the principal amount of the new debt in excess of the principal balance due on the existing debt to the extent that such existing debt (including any prior debt that was previously refinanced by the existing debt) was:
(i) Previously taxable under this paragraph and the tax thereon was timely and properly paid; or
(ii) Exempt under § 42-1102 or not otherwise taxable, including purchase money mortgages described in § 42-1102(5) .
(B) Any amendment, modification, or restatement of a security interest instrument shall be deemed a refinance of the entire aggregate debt owed, unless the amendment, modification, or restatement is a supplemental deed. With such a deemed refinance, the rate in subparagraph (A) of this paragraph shall be applied only to the principal amount of the modified debt (including amounts paid to the borrower on the existing security interest instrument during the preceding 12 months) in excess of the principal balance due on the existing debt (before any such payment) to the extent that the existing debt (including any prior debt that was previously refinanced by the existing debt) was:
(i) Previously taxable under this paragraph and the tax thereon was timely and properly paid; or
(ii) Exempt under § 42-1102 or not otherwise taxable, including purchase money mortgages described in § 42-1102(5) .
(4) Security interest instruments that qualify for exemption under § 42-1102 shall be exempt from the recordation tax.
(a-1) Repealed.
(a-2) Repealed.
(a-3) Repealed.
(a-4) Beginning October 1, 2006, except for residential properties transferred by deed of title for a consideration less than $400,000, an additional tax of .35% is imposed upon a deed that is subject to the tax under subsection (a)(1) of this section. Of the funds collected under this subsection, 15% shall be deposited in the Housing Production Trust Fund established by § 42-2802 , and the remainder shall be deposited in the General Fund of the District of Columbia.
(a-5) Expired.
(1) Each such deed shall be accompanied by a return in such form as the Mayor may prescribe, executed by all parties to the deed, setting forth the consideration for the deed or debt secured by the deed, and such other information as the Mayor may require.
(2) The return shall be an integral part of the deed when prescribed and as required by regulation.
(3) The return shall not be confidential or subject to the provisions of §§ 47-1805.04 and 47-4406 , unless otherwise provided by regulation.
(1) A purchase money mortgage or purchase money deed of trust shall:
(A) Be fully executed within 30 days of the date that the deed conveying title to the real property to the purchaser is fully executed; and
(B) Be recorded within 30 days after the date that the deed conveying title to the purchaser of the real property is duly recorded.
(2) A purchase money mortgage or purchase money deed of trust submitted to the Mayor for recordation shall:
(A) Be executed by the purchaser of the real property as part of a series of transactions conveying title to real property to the purchaser;
(B) Reference the deed conveying title to the purchaser of the real property by date and instrument number;
(C) Recite on the face of the document that it is a purchase money mortgage or purchase money deed of trust; and
(D) Recite on the face of the document the amount of purchase money that it secures.
(c) The parties to a deed which is submitted to the Mayor for recordation shall be jointly and severally liable for payment of the taxes imposed by this section; provided, that neither the United States nor the District of Columbia shall be jointly and severally liable with the transferee; provided further, that, beginning October 1, 2009, in the case of a deed that evidences a transfer of an economic interest in a cooperative housing association, the cooperative housing association shall be jointly and severally liable with the parties to the deed for the payment of taxes imposed by this section regardless of whether the cooperative housing association itself is a party to the deed.
(d) The deed and accompanying return shall be due as prescribed in § 47-1431(a) for the recordation of a deed; provided, that if the deed and return are submitted to the Recorder of Deeds before the due date, the return shall be due and taxes shall be due and owing at the time of submission.
(1) Beginning October 1, 2017, for eligible property purchased by a first-time District homebuyer, the rate of tax provided in subsections (a) and (a-4) of this section shall be reduced as follows; provided, that the requirements of paragraph (2) of this subsection are met; provided further, that the entire benefit of the reduced recordation tax rate shall be allocated to the grantees of the eligible property, as shown on the settlement statement or closing disclosure form:
(A) To 0.725% for a deed of title; or
(B) For an economic interest in a cooperative unit:
(i) To 1.825% when consideration allocable to the real property is less than $400,000; or
(ii) To 2.175% when consideration allocable to the real property is $400,000 or greater.
(A) To be eligible for the reduced recordation tax rate provided by this subsection, the applicant for the reduced rate shall, at the time the deed is offered for recordation:
(i) Certify that the applicant is a first-time District homebuyer and is a bona fide District of Columbia resident;
(ii) Provide proof that the combined federal adjusted gross income, as shown on all the owners' and household members' federal income tax returns originally due or filed immediately before (if filed before the original due date) the deed is offered for recordation, is no higher than 180% of the Area Median Income as provided before the beginning of the real property tax year (and effective for such tax year) by the United States Department of Housing and Urban Development as a direct calculation without taking into account any adjustment;
(iii) Provide proof that the real property to be purchased is eligible property; and
(iv) Submit a copy of the homestead deduction application for the eligible property, signed by the applicant.
(B) For purposes of subparagraph (A)(ii) of this paragraph, the term "household" excludes any tenant occupying a separate dwelling unit under a written lease for fair market value.
(3) The Mayor or the Chief Financial Officer of the District of Columbia may require the applicant to provide such documentation as may be necessary or appropriate to substantiate entitlement to the reduced rate of tax provided under this subsection.
(f) By December 1 of the 4th year of the applicability of the recordation reduction tax benefit established by subsection (e) of this section, the Mayor shall submit a report to the Council that analyzes the impact of the recordation reduction tax benefit for first-time District homebuyers, which shall include:
(1) An analysis of the recordation tax rate reduction on homeownership in the District;
(2) The number of households who received the recordation tax rate reduction through December 31, 2021.
(3) The total number of home sales in the District within the time frame of the recordation tax rate reduction;
(4) An evaluation of the access to housing for people within the affected income range with the time frame of the recordation tax rate reduction;
(5) The overall housing affordability in the District each year that the recordation tax rate reduction was in place; and
(6) A recommendation regarding whether or not to continue the recordation reduction tax benefit.
(g) Notwithstanding subsection (c) of this section and § 47-4421 , any subsequent deficiency of recordation tax determined to be owed on a deed taxed at the rate provided under subsection (e) of this section when the deed was accepted for recordation shall be the liability of the grantee or grantees solely and shall not create a lien on the real property that was transferred under such deed.
(h) Funds collected under this section shall be deposited pursuant to § 42-1122 .