Real Estate

Photo by PoPville flickr user John Goucher

From Councilmember Grosso’s office:

“Today Councilmember David Grosso, chairperson of the Committee on Education, introduced legislation to generate new revenue for the District of Columbia’s budget priorities with a progressive tax on high-value properties.

“D.C. has experienced tremendous economic growth in the past decade, but not everyone has shared in that prosperity,” said Grosso. “Instead, the income and wealth gap has widened in that period and is starkest along racial lines.”

The wealthiest 20 percent of households in D.C. make 7.5 times as much income annually compared to the poorest 20 percent. The average wealth of white households is now 81 times that of the average Black household.

“Every budget cycle, investments in educating our students, ending homelessness, and preventing violence in our communities fall short. A high-value property tax would address racial inequity by raising resources from those most well off to fund public investments to lift up those who have been left behind,” said Grosso.

Currently, residential property is taxed at 85 cents per $100 of value, prior to deductions for principal residences and for senior citizens. Residential Real Property Taxes Equitable Alignment Act of 2019 would create two additional marginal rates for high-value properties, taxing $1.25 for every $100 of value over $1.5 million and $1.50 for every $100 in value over $5 million. (more…)