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DC Passes Tax for Co-ops

  • June 3rd 2009

by Mark Wellborn

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DC Passes Tax for Co-ops: Figure 1

Yesterday, the DC City Council passed the measure to tax co-ops that we wrote about earlier this week. The “economic interest tax” will apply a transaction fee for both parties (buyer and seller) in the sale of a co-op unit. For sales under $400,000, that fee will be 1.1 percent and 1.45 percent for any property above $400,000.

The measure was part of the Fiscal Year 2010 Budget Support Act of 2009. It will go into effect next year. As we noted in our earlier post, co-ops are attractive options to prospective buyers in DC specifically because these types of taxes were not imposed. (This is because the sale of a co-op unit is not a transfer in title like most properties, but rather a transfer of an “economic interest.”)

We will update this post as we receive more information about the new tax.

See other articles related to: dclofts

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/dc_passes_tax_for_co-ops/984.

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