2013 District of Columbia Code
Division VIII — GENERAL LAWS
Title 47 — TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
Chapter 46 — SPECIAL TAX INCENTIVES
Section 47-4630 — Tax abatements for high technology commercial real estate database and service providers.

(a) For the purposes of this section, the term:
(1) "High technology commercial real estate database and service provider" means a business entity that provides access to clients via the Internet to its database of commercial real estate information throughout the United States.
(2) "Priority development area" means:
(A) A priority development area as defined in § 47-3801(1A);
(B) A high technology development zone as defined in § 47-1817.06(a)(2);
(C) The Southeast Federal Center/Navy Yard Area, which shall consist of land within the boundary description beginning at the intersection of Interstate 395/295 (SW/SE Freeway), and the Anacostia River Waterfront, S.W.; northwest to 14th Street, S.W.; south on 14th Street, S.W., to the Washington Channel Waterway; east along Washington Channel to the Anacostia River eastern banks; and adjacent areas encompassing the public housing and residential parcels adjacent to the Navy Yard, 8th Street commercial corridor, Marine Barracks, and Buzzards Point area.
(3) "Real property" shall have the same meaning as in § 47-802.
(b) Subject to subsections (f), (g), and (h) of this section, the real property taxes imposed by Chapter 8 of this title with respect to real property purchased or leased and occupied by a high technology commercial real estate database and service provider shall be fully abated for 10 years, beginning the first day of the tax year following the purchase of the real property or the execution of the lease of the real property; provided, that:
(1) The real property continues to be occupied by the high technology commercial real estate database and service provider during the duration of the abatement period and is located in a priority development area;
(2) If the real property is leased, the lease for the real property is for a period of at least 10 years;
(3) The total combined abatements under this section shall not exceed:
(A) $700,000 per fiscal year; and
(B) $6.185 million total over 10 years;
(4) The company receiving the benefit of the abatement:
(A) Is a high technology commercial real estate database and service provider;
(B) Employs a minimum of 250 employees within the District; and
(C) Shall have entered into an agreement with the Department of Small and Local Business Development requiring that any tenant design, build-out, and improvements within the tenant's leased or owned space receiving the tax abatement be contracted with certified local, small, and disadvantaged business enterprises, as certified in accordance with § 2-218.01, for at least 35% of the contract dollar volume of the design, build-out, and improvements;
(5) If the real property is leased, the real property owner shall pass through the abatement to the high technology commercial real estate database and service provider;
(6) No person shall claim an abatement pursuant to this section unless the person occupies real property in the District before January 1, 2011;
(7) No person shall claim an abatement pursuant to this section for an aggregate period of more than 10 years; and
(8) Notwithstanding any other provision of this section, no person shall claim an abatement pursuant to this section prior to October 1, 2010.
(c) If the real property that is the subject of the abatement under section (b) of this section is a portion of a larger unit of real property that is assessed for real property tax under Chapter 8 of this title, the abatement shall be applied by reducing the assessment of the larger unit of real property by the ratio that the square footage of the occupied portion bears to the square footage of the larger unit of real property.
(d) The abatement shall be deducted from the real property tax bill or by issuing a refund (in the same amount as what would have been the abatement) to the high technology commercial real estate database and service provider, notwithstanding § 47-811.02, at the discretion of the Office of Tax and Revenue. The Office of Tax and Revenue may apply the abatement to any half of the tax year.
(e) If the high technology commercial real estate database and service provider shall cease to qualify for the abatement, the abatement shall cease on the first day of the month following the day when the Mayor certifies the disqualification to the Office of Tax and Revenue.
(f) The Mayor shall certify to the Office of Tax and Revenue the identity of each high technology commercial real estate database and service provider for which compliance under subsection (b) of this section has been verified by the Mayor, a description of each real property that is the subject of the abatement provided by this section, and the date on which the abatement shall begin.
(g) The abatement pursuant to this section shall apply once the high technology commercial real estate database and service provider has certified to the Department of Employment Services that the provider has hired at least 100 employees residing in the District of Columbia beyond the number of employees residing in the District of Columbia as of January 5, 2010 ("baseline number"); provided, that the high technology commercial real estate database and service provider shall maintain the baseline number throughout the entire term of the abatement. The failure to maintain the baseline number shall result in the forfeiture of the abatement during any period in which the baseline number is not met.
(h) Funds shall be sufficient within an approved budget and financial plan to support the fiscal impact of a tax abatement under this section.

History
(Mar. 23, 2010, D.C. Law 18-133, § 2(b), 57 DCR 1201; Sept. 26, 2012, D.C. Law 19-171, § 135, 59 DCR 6190.)

Annotations
Effect of Amendments. The 2012 amendment by D.C. Law 19-171 validated a previously made technical correction.

Temporary Addition of Section. Section 2(b) of D.C. Law 18-169 added a section to read as follows:
"§ 47-4631. International House of Pancakes Restaurant #3221-tax exemption clarification.
"The real property, described as Lot 819, Square 5912, known as the International House of Pancakes Restaurant #3221, owned by CHR, LLC, and leased to Fathers and Sons, LLC ('Property'), shall be exempt from the tax imposed by Chapter 8 of this title for the period beginning October 1, 2007, and ending September 7, 2009, in accordance with § 47-1002(23), notwithstanding the requirements of § 47-1002(23)(B)(iv). The tax exemption pursuant to this section shall be in addition to, and not in lieu of, any other tax relief or assistance from any other source applicable to the International House of Pancakes Restaurant located on the Property.".
Section 5(b) of D.C. Law 18-169 provided that the act shall expire after 225 days of its having taken effect.

Emergency Legislation. For temporary (90 day) addition, see § 2(b) of IHOP Restaurant #3221 Tax Exemption Clarification Emergency Act of 2010 (D.C. Act 18-343, March 22, 2010, 57 DCR 2854).
For temporary (90 day) amendment of section, see § 2 of Third & H Streets, N.E. Economic Development Technical Clarification Emergency amendment Act of 2010 (D.C. Act 18-392, May 7, 2010, 57 DCR 4344).
For temporary (90 day) repeal of section 3 of D.C. Law 18-169, see § 7010 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).

Legislative History of Law 18-133. Law 18-133, the "High Technology Commercial Real Estate Database and Service Providers Tax Abatement Act of 2010", was introduced in Council and assigned Bill No. 18-476, which was referred to the Committee on Finance and Revenue. The bill was adopted on first and second readings on December 15, 2009, and January 5, 2010, respectively. Signed by the Mayor on January 25, 2010, it was assigned Act No. 18-295 and transmitted to both Houses of Congress for its review. D.C. Law 18-133 became effective on March 23, 2010.

Legislative History of Law 19-171. Law 19-171, the "Technical Amendments Act of 2012," was introduced in Council and assigned Bill No. 19-397. The Bill was adopted on first and second readings on Mar. 20, 2012, and Apr. 17, 2012, respectively. Signed by the Mayor on May 23, 2012, it was assigned Act No. 19-376 and transmitted to Congress for its review. D.C. Law 19-171 became effective on September 26, 2012.

Delegation of Authority. Delegation of Authority under High Technology Commercial Real Estate Database and Service Providers Tax Abatement Act of 2010, see Mayor's Order 2010-184, December 31, 2010 (57 DCR 12645).

Editor's Notes Sections 3 and 4 of D.C. Law 18-133 provided:
"Sec. 3. Funding for tax abatements for high technology commercial real estate database and service providers.
"The Office of the Deputy Mayor for Planning and Economic Development shall transfer up to $700,000 annually from the industrial revenue bond special account established under D.C. Official Code § 47-131(c)(4), or other appropriate fund, to the General Fund of the District of Columbia to offset revenue reductions for qualified high technology commercial real estate database and service providers.
"Sec. 4. Development of comprehensive strategy for attracting business.
"The Mayor shall develop a comprehensive strategy, within 90 days of the effective date of this act, that identifies a uniform process for attracting businesses to the District of Columbia."
Section 7010 of D.C. Law 18-223 repealed section 3 of D.C. Law 18-169.
The Budget Director of the Council of the District of Columbia has determined, as of February 15, 2012, that the fiscal effect of Law 18-335 has not been included in an approved budget and financial plan, except for funding through Fiscal Year 2013 for CoStar. That determination, however, does not affect the codification of this section.