DC Council To Discuss Pied-à-Terre Tax As Part of Broader Revenue Push

• September 3rd

by UrbanTurf Staff

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DC is discussing borrowing a page from NYC's tax playbook. 

DC Council Chair Phil Mendelson has scheduled a Council meeting for October in order to debate a slate of possible tax changes and increases, as the Council looks to get ahead of a revenue shortfall before next spring's budget season. Among the ideas up for discussion is a pied-à-terre tax, which would likely target high-value homes owned by people who don't live in them full-time.

DC already has some precedent for taxing high-value homes: as part of the 2025 budget, the Council passed a "mansion tax," a property tax hike on homes valued at more than $2.5 million, adding $1 for every $100 of assessed value above that threshold on top of the standard residential rate of $0.85 per $100. A pied-à-terre tax would likely layer a second condition onto that kind of high-value-home taxation — not just what a property is worth, but whether the owner actually lives there.

That distinction is drawing renewed attention thanks to New York City's rollout of its own pied-à-terre tax this year. Mayor Zohran Mamdani and Governor Kathy Hochul's proposal — approved in May — applies to one- to three-family homes valued above $5 million and condos or co-ops assessed above $1 million where the owner's primary residence is elsewhere, and is projected to raise at least $500 million annually for the city. The rollout has been rocky, though: a City Council oversight hearing last month aired complaints from homeowners who say they were mistakenly flagged for the surcharge, and litigation is ongoing.

Unlike a wealth proceeds tax and a land value tax proposal, both of which have formal bill numbers and sponsors, a pied-à-terre tax is only up for discussion at this point. The DC Council meeting is scheduled for October 16.

This article originally published at https://dc.urbanturf.com/articles/blog/dc_council_weighs_pied--terre_tax_as_part_of_broader_revenue_push/24963.