photo by Clif Burns
From the office of Ward 3 Councilmember Matt Frumin:
“Councilmember Frumin Introduces Legislation to Address Income Tax Avoidance Strategy and Raise Over $130 Million for District Services
On September 16, 2026, Ward 3 Councilmember Matthew Frumin introduced the “Pied-à-Terre Property Tax Amendment Act of 2026,” to address a reality that certain owners of luxury second homes strategically avoid paying DC income taxes.
“Across the District, there are homeowners who are careful to live here for one day less than the 183-day statutory residency test and instead establish residency in a low- or no-tax state,” said Councilmember Frumin. “These wealthy owners benefit from District infrastructure, services, and amenities for nearly half the year, but pay zero income tax to DC. This tax avoidance strategy shifts the financial burden onto resident taxpayers. This bill ensures that those who use DC as a part-time residence pay their fair share.”
The bill establishes a new Class 1C property tax category that applies to select non-owner-occupied residential properties that carry an assessed value of $2.558 million or greater and for which the owner does not claim the District’s homestead deduction.
Key Features of the Bill: (more…)