Major Increase in Transfer and Recordation Taxes Coming to Washington, DC This Fall
Kelley Drye Client Advisory
June 4, 2019

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.

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Joseph B. Hoffman
Partner
jhoffman@kelleydrye.com
(202) 342-8857

Allan J. Weiner
Partner
aweiner@kelleydrye.com
(202) 342-8431

Michael S. Kosmas
Partner
mkosmas@kelleydrye.com
(202) 342-8887

Aaron D. Rosenfeld
Partner
arosenfeld@kelleydrye.com
(202) 342-8605