New York Avenue Development Property Tax Freeze Act of 1999
Bill 13-35

DC Watch Home

Council Period 12

Council Period 13

Council Period 14

Council Period 15

Election 1998

Election 2000

Election 2002

themail

Search DCWatch

A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

To establish the New York Avenue Development District and freeze real property tax assessment on properties zoned or developed for commercial and industrial purposes within the development district.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "New York Avenue Development Property Tax Freeze Act of 1999.".

Sec. 2. Findings. The Council of the District of Columbia finds that:

(1) The four-mile corridor of land fronting on New York Avenue between 7th Street, N.W., and South Dakota Avenue, N.E., totals approximately 590 acres with more than one-third listed as privately owned and vacant.

(2) The corridor is blighted; thus, it discourages commercial and industrial development and adversely affects public health, safety, and welfare.

(3) Fifty-nine percent of the corridor is zoned for commercial or industrial; and of the 100 acres (or 17 %) zoned for residential use, only 19 acres are actually in use as residences: the remainder is vacant.

(4) The corridor is best suited for commercial and industrial development because it is a major gateway to the Nation's capital; it predominantly contains zoning designations appropriate for commercial and industrial developments; and it has limited residential usage.

(5) Freezing real property tax rates rates has been successfully used by other jurisdictions as an incentive for the development of blighted areas.

(6) In the absence of an attractive incentive, the blighted conditions in the corridor are likely to continue.

(7) It is in the best interest of the District to designate New York Avenue between 7th Street, N.W., and South Dakota Avenue, N.E., as a development district for commercial and industrial growth.

Sec. 3. Definitions.

For the purposes of this act, the term:

(1) "Development District" mean the New York Avenue Development District established by section 4.

(2) "Eligible property" means any taxable real property within the Development District that meets the following requirements:

(A) The real property is zoned, or approved by a zoning variance or other specific exceptions for commercial or industrial use;

(B) The real property is used as the location of a new start-up commercial or industrial activity or as an additional location or expansion of an existing commercial or industrial activity;

(C) A valid certificate of occupancy has been issued for the real property and all relevant business or occupational licenses have been issued for the commercial or industrial activity conducted on the real property;

(D) Active commercial or industrial operations are conducted on the real property during at least 9 months of each tax year during the tax freeze period established by section 5(a); and

(E) The real property is not be the location of a commercial or industrial activity that closed down somewhere else in the District and relocated in the Development District intending to obtain the benefits created by this act.

Sec. 4. Establishment of the New York Avenue Development District.

(a) There is established an area to be known as the New York Avenue Development District which shall consist of the following:

(1) Any private real property with frontage on New York Avenue between 7th Street, N.W., and South Dakota Avenue, N.E.;

(2) A private real property that has no frontage on New York Avenue between 7th Street, N.W., and South Dakota Avenue, N.E., but is adjacent and contiguous to a private property with such frontage for the purpose of specific commercial or industrial activity or development; and

(3) Any other private real property that is approved for inclusion in the Development District in pursuant to subsection (b) of this section.

(b) The Mayor may propose to be included in the Development District any other private real property that does not meet the requirements of subsection (a) of this section but is within the broad proximity of New York Avenue subject to a determination that such proposal is in the best interest of the District and is necessary to achieve the purposes of this act. The Mayor shall submit the proposal to the Council for review. The Council, by resolution, shall approve or disapprove the proposal within 45 days after mayoral submission, excluding Saturdays, Sundays, and days of Council recess. A proposal shall be deemed approved if not disapproved by the end of the 45-day review period.

Sec. 5. Tax freeze and thawing.

(a) There shall be established a real property tax freeze eligibility period ("tax freeze eligibility period") beginning October 1, 1999, and ending September 30, 2009, ("tax freeze eligibility) during which the real property tax on any eligible property within the Development District shall remain constant at the assessment and rate in effect for the tax year it becomes eligible, subject to the following:

(1) The real property tax on an eligible property shall be frozen remain constant for 10 consecutive years beginning with the year it becomes eligible at any point within the tax freeze eligibility period.

(2) The real property tax amount payable on an eligible property shall not be reduced below the rate in effect during the tax year it becomes eligible in any given year within the tax free eligibility period except to adjust for a lower rate that becomes effective after the real property becomes eligible.

(b) Beginning in the year immediately following its 1 0-year freeze period, an eligible property shall qualify for a 1 0-year thawing period, during which the amount of real property tax due on that eligible property for each year shall be adjusted upward in approximately ten equal increments until the full amount required by the applicable tax rate and assessed value is reached. The full amount required by the assessment and rate shall then be applied henceforth from the year immediately following the eligible property's 1 0-year thawing period.

Sec. 6. Disqualification

Any eligible real property that fails to maintain its eligibility during any tax year covered by the tax freeze eligibility period shall be taxed for the full amount of real property tax due for that year.

Sec. 7. Penalties.

Any corporation, or person acting on behalf of a corporation, who knowingly and willfully makes any false or deceptive statement, submits any false or deceptive record, or commits fraud upon the District in any manner intending to obtain the benefits provided by this act shall be ordered to pay the District an amount equal to 3 times the damages caused to the District in addition to any other civil or criminal penalties provided by the laws of the District. The Corporation Counsel may bring a civil action to recover the damages.

Sec. 8. Rules and annual report.

The Mayor, within 60 days of the effective date of this act, shall issue rules to implement this act. The rules shall be submitted to the Council for a review period of 45 days, excluding Saturdays, Sundays, holidays, and days of Council recess. The Council, by resolution, may approve or disapprove the proposed rules; otherwise they shall be deemed approved by the end of the 45-day review period.

Sec. 9. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Self-Government and Governmental Reorganization Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3))

Sec. 10. Effective date.

This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Self-Government and Governmental Reorganization Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.