Two Pied-à-Terre Tax Proposals Are Now on the Table in DC. Here's How They Compare.

• September 23rd

by UrbanTurf Staff

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Earlier this month, news came that a pied-à-terre tax would be among the revenue ideas the DC Council discusses this fall. Now there are two visions for that tax. Here's a look at both.

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The Frumin bill

Councilmember Matthew Frumin introduced the Pied-à-Terre Property Tax Amendment Act of 2026 last week. The bill would create a new Class 1C property tax category for homes assessed above $2.558 million whose owners don't claim the homestead deduction. Those homes would be taxed at $2.50 per $100 of assessed value, which is half the District's vacant property rate. Frumin's office says that reflects homes that sit empty at least half the year.

Frumin frames the bill as a fix for income tax avoidance by owners who stay in DC one day short of the 183-day residency test while claiming residency in a low- or no-tax state. The Office of Revenue Analysis estimates the bill would apply to roughly 600 properties and raise more than $130 million over the four-year financial plan.

The Mendelson draft

Council Chair Phil Mendelson's Taxing Second Homes in the District Amendment Act was circulated earlier this month in a memo ahead of next month's tax hearing. It has not been formally introduced. Mendelson's team has described it as more of a conversation starter than a finished proposal.

Instead of taxing the full value at a higher rate, the draft builds on the existing mansion tax. It would also create a Class 1C category for homes assessed above $2.558 million whose owners don't claim the homestead deduction. Those homes would pay $0.85 per $100 on the first $2.558 million and $2.00 per $100 on value above that, double the current $1.00 rate on that top portion. The threshold would be indexed to inflation, and the new tax category would take effect in tax year 2027. Co-ops are excluded, and the category covers properties with up to two units.

The practical gap between the two bills is wide. For a $3 million second home, Mendelson's draft would raise the annual tax bill by about $4,400, to roughly $30,600. Frumin's would push it to $75,000.

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Exemptions

Frumin's bill exempts homes under active construction, homes with long-term tenants paying market rent, homes owned by members of Congress or federal appointees, and homes listed for sale or rent at market rates for up to nine months.

Mendelson's draft exempts licensed rentals with a long-term tenant for at least nine months of the year and homes listed for sale or rent for up to six months. It also exempts a broader group of federal officials who aren't domiciled in DC: members of Congress, certain congressional staff, Senate-confirmed appointees, and Supreme Court justices.

Context

Only three U.S. jurisdictions have adopted anything resembling a pied-à-terre tax: Montana, Rhode Island, and New York. New York's rollout has been rocky. New York City's Department of Finance sent letters to more than 17,000 property owners, including some who say their New York home is their primary residence.

The proposals come as the Office of the DC Auditor projects that District tax revenue will fall from $12.2 billion to $11.8 billion this fiscal year. The office cites job losses, commercial real estate devaluations, and federal spending cuts. Mendelson has told reporters that no tax increase will come to a vote this fall.

Both proposals will be discussed at a Committee of the Whole hearing on tax policy on October 16, alongside other revenue ideas such as a 3% surcharge on investment income for high earners.

This article originally published at https://dc.urbanturf.com/articles/blog/two_pied--terre_tax_proposals_are_now_on_the_table_in_dc_heres_how_they_com/25025.