Classes of property.

(c) For the property tax year beginning July 1, 1980, and ending June 30, 1981, and for each tax year thereafter, the following classes of real property are established:

(1) Class 1 Property. —

(A) Class 1 Property shall be comprised of improved residential real property which:

(i) Is occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property; provided, that at least 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association.

(C) Vacant real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if said vacant property and the improved residential real property which it abuts have common ownership. For the property tax year beginning July 1, 1984, and ending June 30, 1985, and for each tax year thereafter, vacant real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 1 improved residential real property separated by the alley from the vacant lot;

(2) Class 2 Property. —

(A) Class 2 Property shall be comprised of improved residential real property, including apartment buildings, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property; provided, that less than 50% of the dwelling units contained therein are occupied by the shareholders or members of such cooperative housing association.

(C) Improved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.

(D) Vacant real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if said vacant property and the improved residential real property which it abuts have common ownership. For the property tax year beginning July 1, 1984, and ending June 30, 1985, and for each tax year thereafter, vacant real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 2 improved residential real property separated by the alley from the vacant lot.

(E) The Mayor may require an owner of real property to submit such information relating to the ownership of vacant real property as in the Mayor’s judgment will assist in the determination of ownership of such property as required under this section for purposes of real property classification;

(3) Class 3 Property. — Class 3 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property. Vacant real property which abuts and has common ownership with real property subject to the apportionment provision of subsection (f) of this section shall also be classified as Class 3 Property.

(c-1) For the property tax year beginning July 1, 1985, and ending June 30, 1986, and for each subsequent tax year, the following classes of real property not covered in subsection (c-2) or (c-3) of this section are established:

(1) Class 1 Property. —

(A) Class 1 Property shall be comprised of improved residential real property which:

(i) Is occupied by the owner of the property;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property, so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Vacant real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the vacant property and the improved residential real property which it abuts have common ownership.

(D) Vacant real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 1 improved residential real property separated by the alley from the vacant lot.

(2) Class 2 Property. —

(A) Class 2 Property shall be comprised of improved residential real property, including buildings, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property, so long as less than 50% the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Improved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.

(D) Vacant real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the vacant property and the improved residential real property which it abuts have common ownership.

(E) Vacant real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The vacant real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission do not allow the building of any structures on the vacant real property as a matter of right; and

(iii) The owner of the vacant real property also owns the Class 2 improved residential real property separated by the alley from the vacant lot.

(F) The Mayor may require an owner of real property to submit such information relating to the ownership of vacant real property as in the Mayor’s judgment will assist in the determination of ownership of the property as required under this section for purposes of real property classification.

(3) Class 3 Property. —

(A) Class 3 Property shall be comprised of improved commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings or accommodations to transients.

(B) For purposes of subparagraph (A) of this paragraph the term “transient” means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient, but shall be considered a permanent resident of the hotel, motel or inn.

(4) Class 4 Property. — Class 4 Property shall be comprised of all real property which is not Class 1 Property, Class 2 Property or Class 3 Property. Vacant real property which abuts and has common ownership with real property subject to the apportionment provision of subsection (f) in this section shall also be classified as Class 4 Property.

(c-2) For the property tax year beginning July 1, 1990, and ending June 30, 1991, and the subsequent tax years beginning July 1, 1991, and ending June 30, 1992, and beginning July 1, 1992, and ending June 30, 1993, and for the period beginning July 1, 1993, and ending September 30, 1993, and beginning October 1, 1993, and ending September 30, 1994, the following classes of real property are established:

(1) Class 1 Property. —

(A) Class 1 Property shall be comprised of improved residential real property which:

(i)

(I) Is occupied by the owner of the property; or

(II) Is unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied by the owner of the property at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 1 Property, so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Unimproved real property which abuts improved residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the improved residential real property which it abuts have common ownership.

(D) Unimproved real property which is separated from Class 1 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 improved residential real property separated by the alley from the unimproved real property.

(2) Class 2 Property. —

(A) Class 2 Property shall be comprised of improved residential real property, including buildings, which:

(i) Is not occupied by the owner thereof;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property, so long as less than 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Improved multifamily residential property which contains more than 5 dwelling units and is used exclusively for nontransient dwelling purposes shall also be classified as Class 2 Property.

(D) Unimproved real property which abuts improved residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the improved residential real property which it abuts have common ownership.

(E) Unimproved real property which is separated from Class 2 improved residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 2 improved residential real property separated by the alley from the unimproved real property.

(F) The Mayor may require an owner of real property to submit such information relating to the ownership of unimproved real property as in the Mayor’s judgment will assist in the determination of ownership of the property as required under this section for purposes of real property classification.

(3) Class 3 Property. —

(A) Class 3 Property shall be comprised of improved commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.

(B) For purposes of subparagraph (A) of this paragraph, the term “transient” means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient but shall be considered a permanent resident of the hotel, motel, or inn.

(4) Class 4 Property. — Class 4 Property shall be comprised of:

(A) All improved real property, which is not Class 1 Property, Class 2 Property, or Class 3 Property;

(B) Unimproved real property, which is not Class 1 Property, Class 2 Property, or Class 3 Property, if any of the following conditions are met:

(i) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;

(ii) A building permit has been issued and is in effect as of July 1, 1990; or

(iii) The unimproved real property is used as a parking lot and each approval required from the District of Columbia government for use as a parking lot has been obtained;

(C) For the property tax year beginning July 1, 1991, and ending June 30, 1992, any improved or unimproved real property classified as Class 4 Property as of June 30, 1991, unless the real property qualifies as Class 1, Class 2, or Class 3;

(D) For the property tax year beginning July 1, 1991, and ending June 30, 1992, any unimproved real property that was classified as improved real property as of June 30, 1991, unless the real property qualifies as Class 1, Class 2, or Class 3; and

(E) Class 4 Property shall include, as of June 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the District of Columbia Generalized Land Use Map dated November 1992 that is part of the Comprehensive Plan, provided that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, “the term predevelopment activities” means completion of 1 of the following:

(i) Preparation of subdivision or large tract review applications;

(ii) Preparation or application for District permits or authorizations to proceed with development;

(iii) Participation in special planning or transportation studies prepared in conjunction with the District; or

(iv) Completion of environmental assessment or mitigation studies prepared in conjunction with the District.

(5) Class 5 Property. —

(A) Class 5 Property shall be comprised of all unimproved real property which is not Class 1 Property, Class 2 Property, Class 3 Property, or Class 4 Property.

(B) Unimproved real property that abuts and has common ownership with real property subject to the apportionment provision of subsection (f) of this section and cannot be classified as Class 1 Property, Class 2 Property, Class 3 Property, or Class 4 Property shall also be classified as Class 5 Property.

(c-3) For the property tax year beginning October 1, 1994, and ending September 30, 1995, and for each subsequent tax year, the following classes of real property are established:

(1) Class 1 Property. —

(A) Class 1 Property shall be comprised of improved residential real property that:

(i)

(I) Is occupied by the owner of the property; or

(II) Is unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied by the owner of the property at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property that is owned by a cooperative housing association shall also be classified as Class 1 Property so long as at least 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Class 1 Property that becomes unoccupied shall be classified as Class 2 Property if the property becomes unoccupied due to any of the following conditions:

(i) [Repealed];

(ii) The improved real property is actively for sale at a reasonable market price as of September 30 of the preceding tax year;

(iii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year; or

(iv) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation.

(D) Unimproved real property which abuts improved and occupied residential real property qualified as Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the improved and occupied residential real property which it abuts have common ownership.

(E) Unimproved real property which is separated from Class 1 improved and occupied residential real property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 improved and occupied residential real property separated by the alley from the unimproved real property.

(2) Class 2 Property. —

(A) Class 2 Property shall be comprised of improved and occupied residential real property, including a building, that:

(i) Is occupied, but not by the owner;

(ii) Contains not more than 5 dwelling units, whether as a row, detached, or semidetached structure, or is a single dwelling unit owned as a condominium; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property which is owned by a cooperative housing association shall also be classified as Class 2 Property so long as less than 50% of the dwelling units are occupied by the shareholders or members of the cooperative housing association.

(C) Improved and occupied multifamily residential real property which contains more than 5 dwelling units and is used exclusively for nontransient purposes shall also be classified as Class 2 Property.

(D) Unimproved real property which abuts improved and occupied residential real property qualified as Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the improved and occupied residential real property which it abuts have common ownership.

(E) Unimproved real property which is separated from Class 2 improved and occupied residential real property by a public alley less than 30 feet wide shall be classified as Class 2 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 2 improved and occupied residential real property separated by the alley from the unimproved real property.

(F) Class 2 Property that becomes unoccupied shall be classified as Class 4 Property if it becomes unoccupied due to any of the following conditions:

(i) A major fire, flood, or other casualty to the improved real property, which was not intentionally caused by the owner, has occurred during the 12 months preceding the tax year;

(ii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year;

(iii) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation; or

(iv) An application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year, before the Board of Zoning Adjustment, the Zoning Commission, the Commission of Fine Arts, the Historic Preservation Review Board, or the National Capital Planning Commission.

(G) Improved real property described in paragraph (1)(C) of this subsection.

(3) Class 3 Property. —

(A) Class 3 Property shall be comprised of improved and occupied commercial real property, including hotels, motels, inns, or any other place, which is regularly used for the purpose of furnishing rooms, lodgings, or accommodations to transients.

(B) For purposes of subparagraph (A) of this paragraph, the term “transient” means a person who is merely sojourning in the District, including a person who is visiting for a few days, or comes to the District to perform some special service or attend some special event. Any person who is furnished accommodations for a period of 90 consecutive days or more shall no longer be considered a transient, but shall be considered a permanent resident of the hotel, motel, or inn.

(C) Class 3 Property that becomes unoccupied shall be classified as Class 4 Property if it becomes unoccupied due to any of the following conditions:

(i) A major fire, flood, or other casualty to the improved real property, which was not intentionally caused by the owner, has occurred during the 12 months preceding the tax year;

(ii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year;

(iii) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation; or

(iv) An application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year, before the Board of Zoning Adjustment, the Zoning Commission, the Commission of Fine Arts, the Historic Preservation Review Board, or the National Capital Planning Commission.

(4) Class 4 Property. — Class 4 Property shall be comprised of all real property which is not Class 1 Property or Class 2 Property or Class 3 Property.

(5) Repealed.

(c-4) For the real property tax year beginning October 1, 2001, and ending September 30, 2002, the following classes of real property are established:

(1) Class 1 Property. —

(A) Class 1 Property shall be comprised of improved residential real property that:

(i) Is occupied; and

(ii) Is used exclusively for nontransient residential dwelling purposes.

(B) Improved residential real property that is owned by a cooperative housing association shall also be classified as Class 1 Property.

(C) Improved and occupied multifamily residential real property which is used exclusively for nontransient dwelling purposes shall also be classified as Class 1 Property.

(D) Unimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the Class 1 Property have common ownership.

(E) Unimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if the following conditions are met:

(i) The unimproved real property is less than 1,000 square feet in size;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 Property separated by the alley from the unimproved real property.

(F) Class 1 Property that becomes unoccupied shall remain classified as Class 1 Property if:

(i) Unoccupied due to a major fire, flood, or other casualty to the improved real property, if the improved real property was occupied at the time of the casualty, and the major fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner;

(ii) The improved real property is actively for sale at a reasonable market price as of September 30 of the preceding tax year;

(iii) A building or demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year; or

(iv) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation.

(2) Class 2 Property. — Class 2 Property shall be comprised of all real property which is not Class 1 Property.

(c-5) Repealed.

(c-6)

(1) For tax years 2003 through 2006, the following classes of taxable real property are established:

(A) Class 1 Property;

(B) Class 2 Property; and

(C) Class 3 Property.

(2)

(A) Class 1 Property shall be comprised of residential real property that:

(i) Is improved;

(ii) Is occupied; and

(iii) Is used exclusively for nontransient residential dwelling purposes.

(B) Unimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the unimproved real property and the Class 1 Property have common ownership.

(C) Residential real property that is either unoccupied or unimproved shall remain classified as Class 1 property if:

(i) The improved real property is unoccupied due to a fire, flood, or other casualty, if the property was occupied at the time of the casualty, and the fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner or sole tenant;

(ii) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a property which has been offered for sale or rental for more than 8 months shall be presumed not to be offered for sale or rental at a reasonable market price;

(iii) A building permit or a demolition permit has been issued and construction or demolition is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(iv) A building permit has been issued during the 24 months preceding the current tax year;

(v) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation;

(vi) An application for a necessary approval for development of the improved real property is pending, as of September 30 of the preceding tax year or as of March 31 of the current tax year, before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor’s Agent for Historic Preservation, or the National Capital Planning Commission;

(vii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;

(viii) The unimproved real property is used as a parking lot and each approval required from the District government for use as a parking lot has been obtained;

(ix) Unimproved air rights lot that appertains to improved and occupied real property;

(x) Property is designated as a historic landmark under subchapter I of Chapter 11 of Title 6 , or is the subject of an agreement that runs with the land and provides for the preservation of certain historic features of the improvement;

(xi) The unimproved real property is the subject of a public hearing on a proposed overlay zone or on a proposed downzoning of the zone district classification of the real property (other than a downzoning under § 1-301.67 or § 1-301.68 [see now § 1-306.01 et seq.]); or

(xii) The unimproved real property is encumbered by a deed of trust that was recorded during the 24 months preceding the current tax year.

(D) Unimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:

(i) The unimproved real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 1 Property separated by the alley from the unimproved real property.

(E) Real property owned by a qualifying nonprofit housing organization under § 47-3505(a) shall be classified as Class 1 property.

(3)

(A) Class 2 Property shall be comprised of commercial real property that is improved and occupied.

(B) Unimproved real property which abuts Class 2 Property shall be classified as Class 2 Property if the unimproved real property and the Class 2 Property have common ownership.

(C) Commercial real property that is unimproved or unoccupied shall remain classified as Class 2 Property if:

(i) The improved real property is unoccupied due to a fire, flood, or other casualty, if the property was occupied at the time of the casualty, and the fire, flood, or other casualty occurred during the 12 months preceding the tax year and was not intentionally caused by the owner or sole tenant;

(ii) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a property which has been offered for sale or rental for more than 8 months shall be presumed not to be offered for sale or rental at a reasonable market price;

(iii) A building permit or a demolition permit has been issued and building or demolition is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(iv) A building permit has been issued during the 24 months preceding the current tax year;

(v) The improved real property is the subject of a probate proceeding or title to the improved real property is the subject of litigation;

(vi) An application for a necessary approval for development of the real property is pending, as of September 30 of the preceding tax year or as of March 31 of the current tax year, before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Board, the Mayor’s Agent for Historic Preservation, or the National Capital Planning Commission;

(vii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right;

(viii) The unimproved real property is used as a parking lot and each approval required from the District government for use as a parking lot has been obtained;

(ix) An unimproved air rights lot that appertains to improved and occupied real property;

(x) Property is designated as a historic landmark under subchapter I of Chapter 11 of Title 6 , or is the subject of an agreement that runs with the land and provides for the preservation of certain historic features of the improvement;

(xi) The unimproved real property is the subject of a public hearing on a proposed overlay zone or on a proposed downzoning of the zone district classification of the real property (other than a downzoning under § 1-301.67 or § 1-301.68 [see now § 1-306.01 et seq.]); or

(xii) The unimproved real property is encumbered by a deed of trust that was recorded during the 24 months preceding the current tax year.

(D) Class 2 Property shall include, as of September 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the current District of Columbia Generalized Land Use Map that is part of the Comprehensive Plan; provided, that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, the term “predevelopment activities” means completion of one of the following:

(i) Preparation of subdivision or large tract review applications;

(ii) Preparation or application for District of Columbia permits or authorizations to proceed with development;

(iii) Participation in special planning or transportation studies prepared in conjunction with the District of Columbia; or

(iv) Completion of environmental assessment or mitigation studies prepared in conjunction with the District of Columbia.

(E) Unimproved real property which is separated from Class 2 Property by a public alley less than 30 feet wide shall be classified as Class 2 Property if:

(i) The unimproved real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the unimproved real property as a matter of right; and

(iii) The owner of the unimproved real property also owns the Class 2 Property separated by the alley from the unimproved real property.

(4) Class 3 Property shall be comprised of all real property which cannot be classified as either Class 1 Property or Class 2 Property.

(c-7)

(1) For tax year 2007 and thereafter, the following classes of taxable real property are established:

(A) Class 1 Property;

(B) Class 2 Property; and

(C) Class 3 Property.

(2)

(A) Except as otherwise provided in this paragraph, Class 1 Property shall be comprised of residential real property that is improved and used exclusively for nontransient residential dwelling purposes; provided, that the improved and nontransient real property shall not be classified as Class 1 Property if it appears on the list compiled under § 42-3131.16 .

(B) Unimproved real property benefiting from an exemption under subsection (c-6)(2)(C) of this section on December 27, 2006 shall continue to benefit from the exemption and be classified as Class 1 Property for the duration permitted under that subsection; provided, that the exemption shall not be valid after September 30, 2007; provided further, that the unimproved real property may qualify for an exemption in effect after December 28, 2006 and subject to the time restriction and exclusion set forth in subparagraph (E)(ii)(II) of this paragraph.

(C) Real property used as a parking lot shall be classified as Class 1 Property if it appertains to improved Class 1 Property and if each approval required from the District government for use as a parking lot has been obtained.

(D) Unimproved real property which abuts Class 1 Property shall be classified as Class 1 Property if the real property and the Class 1 Property have common ownership.

(E)

(i) Unimproved, residential real property shall be classified as Class 1 Property if:

(I) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year; provided, that a real property which has been offered for sale for more than 8 months shall be presumed not to be offered for sale at a reasonable market price, and a rental offered for rental for more than 90 days shall be presumed not to be offered for rental at a reasonable market price;

(II) A building permit to construct at least one nontransient dwelling unit has been issued and construction is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(III) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right;

(IV) The unimproved air rights lot appertains to improved Class 1 Property;

(V) For a period not to exceed 12 months, the real property is the subject of a pending application for a necessary approval for development before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of Public Works, or the National Capital Planning Commission; or

(VI) For a period not to exceed 12 months, the real property is encumbered by a deed of trust that was recorded during the 12 months preceding the current tax year.

(ii)

(I) Classification of unimproved real property as Class 1 Property pursuant to sub-subparagraph (i)(I), (II), (III), or (IV) of this subparagraph shall not exceed 3 tax years under the same, substantially similar, or related ownership.

(II) Notwithstanding sub-sub-subparagraph (I) of this sub-subparagraph, unimproved real property under the same, substantially similar, or related ownership that qualified for and benefited from an exemption under sub-subparagraph (i) of this subparagraph or under subsection (c-6)(2)(C) or (c-6)(2)(E) of this section, other than under sub-subparagraph (i)(V) or (VI) of this subparagraph or a similar provision of subsection (c-6)(2)(C), for 3 or more tax years shall no longer be classified as Class 1 Property beginning in tax year 2008.

(III) For purposes of this sub-subparagraph, ownership shall be related if a deduction for a loss from the sale or exchange of properties between taxpayers would be disallowed under section 267 of the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete liquidation shall not apply.

(F) Unimproved real property which is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:

(i) The real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and

(iii) The real property and the Class 1 Property separated by the alley from the real property have common ownership.

(3)

(A) Except as otherwise provided in this paragraph, Class 2 Property shall be comprised of improved commercial real property; provided, that such improved real property shall not be classified as Class 2 Property if it appears on the list compiled under § 42-3131.16 .

(B) Unimproved real property benefiting from an exemption under subsection (c-6)(3)(C) of this section on December 27, 2006 shall continue to benefit from the exemption and be classified as Class 2 Property for the duration permitted under subsection (c-6)(3)(c) of this section; provided, that the exemption shall not be valid after September 30, 2007; provided further, that the unimproved real property may qualify for an exemption in effect after December 28, 2006 and subject to the time restriction and exclusion set forth in subparagraph (E)(ii)(II) of this paragraph.

(C) Real property used as a parking lot shall be classified as Class 2 Property if each approval required from the District government for use as a parking lot has been obtained.

(D) Unimproved real property which abuts Class 2 Property shall be classified as Class 2 Property if the real property and the Class 2 Property have common ownership.

(E)

(i) Unimproved, commercial real property shall be classified as Class 2 Property if:

(I) The real property is actively offered for sale or rental at a reasonable market price as of September 30 of the preceding tax year or as of March 31 of the current tax year, provided, that a real property which has been offered for sale for more than 8 months shall be presumed not to be offered for sale at a reasonable market price, and a rental offered for rental for more than 90 days shall be presumed not to be offered for rental at a reasonable market price;

(II) A building permit to construct an improvement or a parking lot has been issued and construction is actively pursued as of September 30 of the preceding tax year or as of March 31 of the current tax year;

(III) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right;

(IV) The unimproved air rights lot appertains to improved Class 2 Property; or

(V) For a period not to exceed 12 months, the real property is the subject of a pending application for a necessary approval for development before the Board of Zoning Adjustment, the Zoning Commission for the District of Columbia, the Commission on Fine Arts, the Historic Preservation Review Board, the Mayor’s Agent for Historic Preservation, the Department of Public Works, or the National Capital Planning Commission; or

(VI) For a period not to exceed 12 months, the real property is encumbered by a deed of trust that was recorded during the 12 months preceding the current tax year.

(ii)

(I) Classification of unimproved real property as Class 2 Property pursuant to sub-subparagraph (i)(I), (II), or (III) of this subparagraph shall not exceed 3 tax years under the same, substantially similar, or related ownership.

(II) Notwithstanding sub-sub-subparagraph (I) of this sub-subparagraph, unimproved real property under the same, substantially similar, or related ownership that qualified for and benefited from an exemption under sub-subparagraph (i) of this subparagraph or under subsection (c-6)(3)(C) of this section, other than under sub-subparagraph (i)(IV) or (V) of this subparagraph or under a similar provision of subsection (c-6)(3)(C) of this section, for 3 or more tax years shall no longer be classified as Class 2 Property beginning in tax year 2008.

(III) For purposes of this sub-subparagraph, ownership shall be related if a deduction for a loss from the sale or exchange of properties between taxpayers would be disallowed under section 267 of the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 78; 26 U.S.C. § 267); provided, that the exclusion under section 267(a)(1) for a loss in a distribution in a complete liquidation shall not apply.

(F) Unimproved real property which is separated from Class 2 Property by a public alley less than 30 feet wide shall be classified as Class 2 Property if:

(i) The real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and

(iii) The real property and the Class 2 Property separated by the alley from the real property have common ownership.

(G) Class 2 Property shall include, as of September 30 of the preceding tax year, the unimproved real property that is within the Northeast No. 1/Eckington Yards Special Treatment Area and the Buzzard Point/Near Southeast Development Opportunity Area, as designated on the current District of Columbia Generalized Land Use Map that is part of the Comprehensive Plan; provided, that the real property is zoned for commercial development and the real property owner is engaged in predevelopment activities as supported by written documentation. For the purpose of this subparagraph, the term “predevelopment activities” means completion of one of the following:

(i) Preparation of subdivision or large tract review applications;

(ii) Preparation or application for District of Columbia permits or authorizations to proceed with development;

(iii) Participation in special planning or transportation studies prepared in conjunction with the District of Columbia; or

(iv) Completion of environmental assessment or mitigation studies prepared in conjunction with the District of Columbia.

(4) Class 3 Property shall be comprised of all real property which cannot be classified as Class 1 Property or Class 2 Property.

(c-8)

(1) For tax year 2011 and thereafter, the following classes of taxable real property are established:

(A) Class 1 Property;

(B) Class 2 Property;

(C) Class 3 Property; and

(D) Class 4 Property.

(2)

(A) Except as otherwise provided in this paragraph and subject to paragraphs (4) and (5) of this subsection, Class 1 Property shall be comprised of residential real property that is improved and its legal use (or in the absence of use, its highest and best permitted legal use) is for nontransient residential dwelling purposes.

(B) Unimproved real property located within a zone designated as residential shall be classified as Class 1 Property.

(C) Real property used as a parking lot shall be classified as Class 1 Property if it appertains to improved Class 1 Property and if each approval required from the District government for use as a parking lot has been obtained.

(D) Unimproved real property that abuts Class 1 Property shall be classified as Class 1 Property if the real property and the Class 1 Property have common ownership.

(E) Repealed.

(F) Unimproved real property that is separated from Class 1 Property by a public alley less than 30 feet wide shall be classified as Class 1 Property if:

(i) The real property is less than 1,000 square feet;

(ii) The zoning regulations adopted by the Zoning Commission for the District of Columbia do not allow the building of any structure on the real property as a matter of right; and

(iii) The real property and the Class 1 Property separated by the alley from the real property have common ownership.

(3) Class 2 Property shall be comprised of all real property which is not Class 1 Property, Class 3 Property, or Class 4 Property.

(4)

(A) Class 3 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.16 .

(B) The Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.16 .

(5)

(A) Class 4 Property shall be comprised of all improved real property that appears on the list compiled under § 42-3131.17 .

(B) The Office of Tax and Revenue may request the Mayor to inspect the improved real property to determine whether the property is correctly included on the list compiled under § 42-3131.17 .