Bill Summary – FastDemocracy

ENROLLED ORIGINAL

                                       A RESOLUTION

                                             25-262

                   IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

                                      September 19, 2023

To declare the existence of an emergency with respect to the need to provide equitable real

       property tax relief to certain property owned by Grace Covenant Church located on Lot

       0800, Square 4138.

         RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

resolution may be cited as the “Grace Covenant Church Equitable Real Property Tax Relief

Emergency Declaration Resolution of 2023”.

        Sec. 2. (a) Grace Covenant Church is a nondenominational church that was established in

Ward 5 in the Brookland neighborhood in 1999 (“Church”). The congregation of the Church

assembled and worshipped in rented properties until the Church purchased its current property

on Lot 0800 in Square 4138 from Capital Temple Church of God in Christ in October 2019. The

goal of this purchase was to have a permanent home and to renovate and expand the space to

better accommodate the congregation, allow for community engagement, and create spaces for

children.

        (b) The transfer of ownership terminated the real property tax exemption that had been

granted to the previous owner. The Church mistakenly thought that the tax exemption had

 transferred through the sale as similar operations were continuing as the property changed hands

between the two churches.

        (c) After receiving a tax bill, the Church filed an Application for Exemption from D.C.

Real Property Tax form in December 2021. The application was approved by the Office of Tax

and Revenue (“OTR”) and the exemption went into effect on January 1, 2022. Because the

Church was not eligible for an exemption until the application was filed, OTR could not grant an

exemption for prior periods. As a result, there currently remains an unpaid tax liability on the

Church property from tax year 2020 through a portion of tax year 2022.

        (d) On April 28, 2023, Councilmember McDuffie introduced a permanent version of this

legislation and on June 28, 2023, the Committee on Business and Economic Development held a

hearing on the permanent version (Bill 25-281). The hearing included questioning by Chairman

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McDuffie to both the witness from the Church and a representative from the Office of the Chief

Financial Officer. At this hearing the Office of the Chief Financial Officer supported the

legislation.

        (e) There is a need to pass this legislation via emergency because on October 1, 2023,

the Church will accrue more interest and fines on the unpaid tax liability. To ensure that the

amount budgeted by the District for this legislation is used in the current fiscal year, the

legislation will need to be enacted before October 1.

       Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute

emergency circumstances making it necessary that the Grace Church Equitable Real Property

Tax Relief Emergency Act of 2023 be adopted after a single reading.

       Sec. 4. This resolution shall take effect immediately.

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