MAJOR INCREASE IN TRANSFER AND RECORDATION TAXES COMING TO WASHINGTON, DC THIS FALL.
The cost of a real estate transaction in the District of Columbia is set to increase significantly after the DC Council unanimously approved a substantial increase in the transfer and recordation taxes charged in connection with the transfer of commercial and mixed-use real property (or the transfer of a controlling interest in certain entities that own real property) in excess of $2 million. Assuming that Congress does not block the increase before June 28, 2019, effective October 1, 2019, transfer and recordation taxes will collectively increase to 5% from 2.9% in connection with the transfer of property in the District of Columbia. Additionally, recordation taxes for non-exempt Deeds of Trust will increase to 2.5% from 1.45%. Kelley Drye’s real estate group is available to discuss any of your concerns.
Joseph B. Hoffman
Allan J. Weiner
Michael S. Kosmas
Aaron D. Rosenfeld