Real Property Tax All real property, unless expressly exempted, is subject to the real property tax and is assessed at 100% of market value. . Rate. Recorder of Deeds announced today that it has revised the Real Property Recordation and Transfer Tax Form FP 7/C (herein “FP7C”). Jurisdiction. Who pays the transfer and recordation tax in the District of Columbia? Definitions. For information regarding documentation required for either tax exemption, view the next list. DC also charges a DRT when (1) a commercial property is refinanced for more than the current balance on outstanding All of these are lumped together on the HUD-1 settlement statement and identified, collectively, as “Transfer Tax.” It’s smart to understand the cost associated with selling or buying real … Taxation of Recordation and Transfers of Real Property. Print; Footer-first. ITEM 1 - TYPE OF FILING: A regular filing is required by law, whether taxable or exempt under Tax-Property Article, § 12-117. Or same as Sate rate (¼%) if first time MD Homebuyer; apply in same fashion as MD transfer tax for 1st time MD Homebuyer. 13. Conservation Easements. 1 The total combined rate on certain real estate transfers will move from 2.9% to a total combined rate of 5%, effective October 1, 2019 (which would … recordation tax and local transfer tax section 14-104(c)(1) of the real property article of the annotated code of maryland provides that the entire amount of recordation tax and local transfer tax shall be paid by the seller unless there is an express agreement between the parties that the recordation tax and local transfer tax will not be paid entirely by the seller. Government of the District of Columbia. However, the terms of your contract and final documents will ultimately determine these costs. The transfer and recordation tax is collected by the DC Office of Tax and Revenue (OTR) when there is a real estate transaction in the District. Document Updates: DC Real Property Recordation and Transfer Tax Form FP 7-C (Cx2485) Sign In; Request Demo; Compliance. District of Columbia Office of Tax and Revenue Recorder of Deeds 1101 4th Street, SW Washington, DC 20024 Phone (202)727-5374 Clear all fields Real Property Recordation and Transfer Tax Form FP 71C PART A - Type of Instrument Cl Tax Deed Cl Deed Easement Modification Deed … Agency/Statute. ↪ § 42–202. The new provisions, which include sales and use, individual income, corporate franchise, real property, and recordation and transfer taxes, will take effect Tuesday, October 1, 2019. If the assessed amount of property to be transferred is $400,000 or more, the tax will be 2.9%. §§ 47-1411 – 47-1421. Transfer and recordation taxes are customarily split equally between the buyer and seller. collects real property, recordation and transfer taxes, and conducts the annual tax sale of delinquent property, through the following divisions: The Assessment Division - assesses/values all real property for ad valorem tax purposes, conducts assessment appeals, maintains the assessment roll and parcel maps, and administers the real property exemption laws. 0.5%. Learn more here. Allegheny 301-777-5922. The Individual Income Tax Credit reduces the DC individual income tax liability of eligible homeowners and renters by up to $750. Government of the District of Columbia Office of Tax and Revenue Recorder of Deeds 515 D Street, NW Washington, DC 20001 Phone (202)727-5374 Real Property Recordation and Transfer Tax Form FP 7/C Each transfer of real property at the time the deed is submitted for recordation. Information on the Lower Income Homeownership Exemption Program can be seen in the final supplement, which also contains the application form for that program. Document Update: DC Real Property Recordation and Transfer Tax Form FP 7/C (Cx2485) A magnifying glass icon. The D.C. Recent Articles; Compliance Blog; TRID Center; URLA Resource Center; Matrices; Compliance … The largest component of these costs is for the DC transfer and recordation tax. ), gross sales tax (§ 47-2001 et seq. Where there is no consideration or where the amount is nominal, the basis of the transfer tax is the fair market value of the property conveyed. Document Update: DC Real Property Recordation and Transfer Tax Form FP 7/C (Cx2485) Sign In; Request Demo ; Compliance. 15. Print; Footer-first. Accordingly, this section must be read with other sections of D.C. Law 3-92 relating to recordation tax on deeds (§ 45-921 et seq. Chapter 14. 0.5% 3. Often, the developer will tie payment of the transfer tax to the buyer’s use of the developer’s title company and lender, so it’s important to read contract provisions relating to DC recordation and transfer tax carefully before signing, All real property, unless expressly exempted, is subject to the real property tax, which is assessed at 100% of market value. Transfer and recordation taxes cover the work it takes to transfer and record property titles. It is customary for the seller and the buyer to split the total transfer and recordation tax amount equally (if no exemptions apply). … (Date of Release to Production: 10/24/19) Log in or register to post comments; Wizard . to the payment of the applicable State and County recordation and transfer taxes. ↪ Code of the District of Columbia ↪ Title 42. 1101 4th Street, SW Suite 270 Washington, DC 20024 Phone (202)727-5374. Recordation Tax 1. DC.GOV. Property Transfer Tax (PTT, or transfer tax) when real property is sold. 0.5%. District of Columbia Office of Tax and Revenue Recorder of Deeds 1101 4th Street, SW Washington, DC 20024 Phone (202)727-5374 Documentation Required for Claiming Exemption from Recordation and/or Transfer Taxes The Recorder of Deeds Office cannot provide legal advice or assist in completing any forms. There is also a tax rate increase on cigarettes. The Office of Tax and Revenue's (OTR) real property tax database provides online access to real property information that was formerly available only through manual searches and at various DC public libraries. Download this form to view the list of exemptions. DC also charges a DRT when (1) a commercial property is refinanced for more than the current balance on outstanding loan(s) on such property, and (2) a residential property with five or more units is refinanced. There are many changes to the form,  most of which being minor text and page orientation edits. Easily calculate the Washington DC title insurance rate and transfer tax, including the recordation tax. 7/1000. A first time home buyer discount is available to qualified home buyers. The budget increases taxes on commercial properties over $10M by $0.04 per $100 of assessed value, a 2.2% increase. The District of Columbia charges a Deed Recordation Tax (DRT, or recordation tax) and a Real Property Transfer Tax (PTT, or transfer tax) when real property is sold. The purpose of this revision was to “contain a self-certification of compliance with tax payment, per DC Code § 42-407(2).” Seller pays $7,250 transfer tax. These changes will be in effect on November 1, 2019. In Maryland, you are responsible for the state and county transfer taxes, as well as the county recordation tax. 13. Home; Document Updates; News. Next § 42–202.01. District of Columbia Real Property Recordation and Transfer Tax Form. The purpose of this revision was to “contain a self-certification of compliance with tax payment, per DC Code § 42-407(2).” In most cases, the buyer will pay for the recordation tax. Government of the District of Columbia Office of Tax and Revenue Recorder of Deeds 515 D Street, NW Washington, DC 20001 Phone (202)727-5374 Real Property Recordation and Transfer Tax Form FP 7/C §§ 47-1401 – 47-1401. We can only provide the recording requirements for a particular document. DCFP7C.MSC. Anne Arundel 410-222-1125. ), residential real property transfer excise tax (§ 47-1401 et seq. “(a) There is imposed on each transferor for each transfer at the time the deed is submitted to the Mayor for recordation a tax at the rate of 1.1% of the consideration for such transfer; provided, that in any case where application of the rate of tax to the consideration for the transfer results in a total tax of less than $1 the tax shall be $1. Where there is no consideration or where the amount is nominal, the basis of the transfer tax is the fair market value of the property conveyed. 10/1000 4. October 2019. District of Columbia Recordation Tax. As anticipated, on Tuesday May 28, 2019, the DC Council unanimously approved increasing transfer and recordation taxes from 2.9% to 5% on transactions … Form Name. In the District of Columbia, all conveyances of real property require both a document intake sheet and a completed Real Property Recordation and Transfer Tax Form (FP 7/C). Subchapter I. Definitions. 7/1000. The purpose of this revision was to “contain a self-certification of compliance with tax payment, per DC Code § 42-407(2).” That statute, reprinted below, says that D.C. shall not record if any Transfer Use Close It! You can obtain property value, assessment roll, and other information for more than 200,000 parcels using the links below. In this case, compute the tax based on loan amount, not sales price. 0.5%. For assistance, please contact customer service at … County Transfer Tax 2. To apply, file a Schedule H (Property Tax Credit Form) with your Form D-40 (Individual Income Tax Return). Each transfer of real property at the time the deed is submitted for recordation. cities on the transfer of the title of real property from one person (or entity) to another within the jurisdiction Transactions $647,000 and below, a first-time D.C. homebuyer may be eligible for reduced recordation tax of 0.725%, learn more. 502.1 The basis for the tax is the recordation of a deed and, except as otherwise provided in the Act or this chapter, the tax must be paid at the same time the deed is submitted for recordation. The Office of Tax and Revenue Walk-In Center, at 1101 4th Street, SW, is closed. The D.C. Recordation and Transfer Rates (DC,MD,VA) Click the link Recordation Taxes for a PDF download of our Recordation and Transfer Tax Quick Reference! If your household's total income is $20,000 or less, you may be eligible. Regs. DC … (2) Accept for recordation any deed, as defined in § 42-1101(3), concerning real property in connection with which taxes, assessments, or charges are owing under chapter 11 of this title, under chapters 9 and 14 of Title 47, or to a taxing agency as defined in § 47-1330(8); provided, that this paragraph shall not: Try our app! 14. The D.C. code listing exemptions from transfer tax is provided separately, as is a list with exemptions from recordation tax. If the assessed amount of property to be transferred is less than $400,000, the tax will be 2.2%. We are updating our copy of Form FP 7-C (Cx2485) to more closely match the model form posted on their website, as already indicated above. 2. Agency/Statute. The latter form should be completed by both the grantor and the grantee, and submitted with the deed for recording. DC Code Citation: Title 47, Chapter 9. Subchapter II. Previous § 42–201. Rate. Document Title. Example 2: $500,000 x 1.45% = $7,250 Buyer pays $7,250 recordation tax. The Real Property Recordation and Transfer Tax Form FP/7C is required for all deeds enacting property transfer in D.C and contains instructions. Real Property Tax Suite Now Available at MyTax.DC.gov. The settlement process on commercial transactions and, more particularly, the completion of the FP7/C (Real Property Recordation and Transfer Tax Form) is markedly different than residential transactions. ), personal property tax , and income tax … Document Title. Recordation and Transfer Tax. §§ 47-1431 – 47-1433. For transfers of property valued over $400,000 and up to $2 million, deed transfer (1.45%) and recordation (1.45%) taxes in Washington will continue to total 2.9% of the purchase price or fair market value of the property. These tax amounts are calculated based on the purchase price of the home. The Buyer customarily pays the Recordation tax and the seller customarily pays the Transfer tax. The title insurance and transfer tax calculator will estimate the title insurance rates and transfer tax for one to four family, owner occupied residential units and condominiums. The new provisions, which include sales and use, individual income, corporate franchise, real property, and recordation and transfer taxes, will take effect Tuesday, October 1, 2019. The D.C. Soft Drinks: The sale of or charge for soft drinks are subject to 8 percent sales and use tax. The local government receives a total of $14,500 in transfer & recordation taxes. MARYLAND Transfer / Recordation Charts (As of November 1, 2020) Rate are subject to change. Updated to 8/2019 version. For example, if you bought a $250,000 home in DC, the buyer and seller would each pay $2,750 in DC transfer and recordation tax. Subchapter III. ... abated, or waived under subsection (b) of this section, section 302(24) of the District of Columbia Recordation Tax Act and D.C. Code 47-902(17), 47-1002(26), and 47-2005(32), shall not exceed, in the aggregate, $7 million. Transactions $399,999 and under are taxed at a rate of 1.1% of the purchase price. Rights of the holder of a conservation easement. The portal now includes individual income, business and real property taxes and fees. Deed that Corrects, Confirms, Modifies or Supplements a Previously Recorded Document: Deed, Form FP7/C, Copy of previously recorded document 14. It also increases deed and recordation transfer taxes from 1.45% to … Form Updates. Agency/Statute. 10.28.19 • Document Updates. Once filed, the completed form will be viewable on the Department’s website. Form Updates Investor Updates Investor eQC ... District of Columbia Real Property Recordation and Transfer Tax Form FP-7/C. There is also a tax rate increase on cigarettes. Read more. Deeds are required to be recorded as provided by D.C. Official Code § 47-1431. For houses and condominium units , the recordation tax rate is 0.725% (transfer taxes owed by the seller of 1.1% or 1.45% are unchanged). District of Columbia Real Property Recordation and Transfer Tax Form FP-7/C. 1.0%. 1. Some Key Facts: 1. Subchapter IV. 1.5% 5. Real Property. For transfers of economic interests in a housing cooperative unit (co-op unit), the recordation tax rate is reduced from 2.2% to 1.825% for units under $400,000, and from 2.9% to 2.175% for units $400,000 or greater (there is no transfer tax). The settlement process on commercial transactions and, more particularly, the completion of the FP7/C (Real Property Recordation and Transfer Tax Form) is markedly different than residential transactions. This is not an exhaustive list; you should contact your legal or tax advisor concerning whether The local government receives a total of $6,600 in transfer & recordation taxes. In Washington DC, transfer taxes are also referred to as recordation taxes, stamp taxes or grantee taxes. The Real Property Recordation and Transfer Tax Form FP/7C is required for all deeds enacting property transfer in D.C and contains instructions. The tax is based upon the consideration paid for the transfer. The following tax changes were required by the Fiscal Year 2020 Budget Support Emergency Amendment Act of 2019. Baltimore City 410-333-3760. § 9-335 requires the use of model form “ROD 1 – Real Property Recordation and Transfer Tax Form FP 7-C”, which has recently been updated by the DC Office of Tax and Revenue, and published on their website here: https://otr.cfo.dc.gov/publication/rod-1-real-property-recordation-and-transfer-tax-form-fp-7-c. $50,000 exemption on all transactions. Exceeds sales price. The D.C. code listing exemptions from transfer tax is provided separately, as is a list with exemptions from recordation tax. Form Name. DC.GOV. FURTHER READING: HOW TO QUALIFY FOR DC TAX ABATEMENT. The tax is based upon the consideration paid for the transfer. Rate. Compulsory Recordation of Transfers of Real Property. The tax rate for transfers of economic interests in such property will increase to 5 percent. Settlement Considerations on Acquisitions of DC Commercial Property – Plan Early and Keep Lines of Communication Open Between Settlement Company and Lender . Residential Real Property Transfer Excise Tax. Commercial Property Rate Increase: The combined recordation and transfer tax rate for class 2 property will increase from 2.9 percent to 5 percent if the consideration is $2 million or more. Document Updates: DC Real Property Recordation and Transfer Tax Form FP 7-C (Cx2485) A magnifying glass icon. Recorder of Deeds announced today that it has revised the Real Property Recordation and Transfer Tax Form FP 7/C (herein “FP7C”). It is possible that the buyer may be held responsible for paying both of these fees. Transfer Tax on Real Property. The DC Government website lists all the possible exemptions from Recordation Taxes, and from Transfer Taxes. Download to view a list of required documentation for claiming exemption from either transfer tax or recordation tax.