Chapter 15. Taxation of Personal Property.
Subchapter I. General Provisions.
§ 47–1501. Assessment — Board of Assistant Assessors. [Repealed]
Repealed.
§ 47–1502. Assessment — Full and true value to be listed. [Repealed]
Repealed.
§ 47–1503. Assessment — Forms for listing of property subject to tax. [Repealed]
Repealed.
§ 47–1504. Warehouse property. [Repealed]
Repealed.
§ 47–1505. “Resident” defined. [Repealed]
Repealed.
§ 47–1506. Returns and values to be made at certain dates. [Repealed]
Repealed.
§ 47–1507. Applicable rates. [Repealed]
Repealed.
§ 47–1508. Exemptions.
(a) The following personal property shall be exempt from the tax imposed by this act [this subchapter]:
(1) The personal property of any corporation, and any community chest fund or foundation, organized exclusively for religious, scientific, charitable, or educational purposes, including hospitals, no part of the net earnings of which inure to the benefit of any private shareholder or individual; provided, that (A) the organization shall have first obtained a letter from the Mayor stating that it is entitled to the exemption, and (B) any personal property used for activities that generate unrelated business income subject to tax under section 511 of the Internal Revenue Code of 1986 shall not be exempt.
(2) Works of art owned by a nonresident of the United States, who is not a citizen of the United States, so long as the works of art were lent without charge to the trustees of the National Gallery of Art solely for exhibition without charge to the general public.
(3) Any motor vehicle or trailer registered according to subchapter I of Chapter of Title 50, except that special equipment mounted on a motor vehicle or trailer and not used primarily for the transportation of persons or property shall be taxed as tangible personal property as provided by law.
(3A) The personal property of any company subject to a gross receipts or distribution tax imposed by Chapter 25 or Chapter 39 of this title.
(4) Repealed.
(4A) Repealed.
(5) Repealed.
(6) Repealed.
(7) Beginning on May 1, 1997, the personal property of a wireless telecommunication company, as defined in § 47-3901(12), irrespective of whether the property is used or consumed in furnishing a service the charges from which are subject to Chapter 39 of this title. For purposes of this subparagraph, the term “personal property” shall not include office equipment or office furniture.
(8) The personal property of any digital audio radio satellite service company operating under a digital audio radio service by satellite license granted by the Federal Communications Commission; provided, that such company is subject to a gross receipts tax in force in the District for the period of time or for any portion of the time covered by any return required to be filed by Chapter 15 of this title.
(9)(A) The personal property of a qualified supermarket, as defined in § 47-3801(2), which is a development, as defined in § 47-3801(1), for the first 10 years for which the tax imposed by this chapter would otherwise be due.
(B) The exemption granted by subparagraph (A) of this paragraph shall apply only:
(i) During the time that the real property is used as a supermarket;
(ii) In the case of the development of a qualified supermarket on real property not owned by the supermarket, if the owner of the real property leases the land or structure to the supermarket at a fair market rent reduced by the amount of the real property tax exemption provided by § 47-1002(23); and
(iii) During the time that the supermarket development is in compliance with the requirements of subchapter X of Chapter 2 of Title 2.
(10) [Repealed].
(11) Systems using exclusively solar energy as defined in § 34-1431(14); provided, that, notwithstanding any other provision of law, the Chief Financial Officer shall transfer $120,000 from the certified revenues deposited in the Renewable Energy Development Fund established by § 34-1436 to the unrestricted fund balance of the General Fund of the District of Columbia and shall recognize the $120,000 as local funds revenue in fiscal year 2013 and in each subsequent fiscal year.
(12) Beginning October 1, 2016, cogeneration systems, which shall mean systems that produce both:
(A) Electric energy; and
(B) Steam or forms of useful energy (such as heat) that are used for industrial, commercial, heating, or cooling purposes.
(13)(A) Computer software, unless:
(i) The software is incorporated as a permanent component of a computer, machine, piece of equipment, or device, or of real property, and the software is not commonly available separately; or
(ii) The cost of the software is included as part of the cost of a computer, machine, piece of equipment, or device, or of the cost of real property on the books or records of the taxpayer.
(B) This paragraph shall not be construed to affect the value of a machine, device, piece of equipment, or computer, or the value of real property, or to affect the taxable status of any other property subject to tax under this title.
(a-1) Nothing contained within this act [this subchapter], nor any prior act of Congress relating to the District of Columbia, shall be deemed to impose upon any person, firm, association, company, or corporation a tax based upon tangible personal property owned and stored by the person in a public warehouse in the District of Columbia for a period of time no longer than is necessary for the convenience or exigencies of reshipment and transportation to its destination outside the District of Columbia.
(b) The Mayor shall issue rules necessary to carry out the provisions of subsection (a)(3)(A) and (B) [now subsections (a)(4) and (5) (repealed)] of this section in accordance with subchapter I of Chapter 5 of Title 2.
§ 47–1509. Penalties. [Repealed]
Repealed.
§ 47–1510. Dealers in general merchandise and common carriers by vessels, ships, or boats. [Repealed]
Repealed.
§ 47–1511. Staff of Personal Tax Appraisers; appointment and duties of personnel. [Repealed]
Repealed.
§ 47–1512. Rolling stock.
(a) The rolling stock of railroad companies, refrigerator-car companies, parlor-car companies, sleeping-car companies, tank-car companies, express companies, car-renting companies, and all other companies owning parlor, sleeping, dining, tank, freight, or any other cars which are operated or run over or upon the line or lines of any railroad or terminal company in the District of Columbia, shall be deemed to be located in said District for purposes of taxation, whether or not the individual units are continuously in the District or are constantly changing, and such property shall be reported, assessed, and taxed within the time, and at the rates prescribed by law, for the reporting and taxation of other personal property in the District of Columbia.
(b) Such rolling stock as is primarily located in the District of Columbia shall be reported and taxed at its full and true value on the last day of the calendar year preceding the tax date.
(c) Such rolling stock as is not primarily located in the District of Columbia shall be reported and taxed in the manner following:
(1) Every railroad company operating rolling stock over or upon the line or lines of any railroad or terminal company in the District shall report to the Mayor of the District of Columbia the various classes of such rolling stock so operated by such company whether owned by it or any other railroad company; the number of miles traveled by each class of such rolling stock within the District during the calendar year next preceding the tax date; the total number of miles traveled by each class of such rolling stock on all lines over which such company operates during the calendar year next preceding the tax date; the total full and true value of each class of such rolling stock owned by such company on the last day of the calendar year next preceding the tax date; and such other facts and information as the Mayor may require. The taxable portion of the rolling stock of each such company shall be determined by applying the mileage traveled in the District by the various classes of such rolling stock operated in the District by such company to the total mileage traveled by the various classes of such rolling stock on all lines over which such company operates, and the tax shall be assessed on that portion of such rolling stock owned by such company on the last day of the calendar year next preceding the tax date. The mileage and value of the rolling stock owned by such company which is permanently located outside of the District of Columbia shall not be included in the computation of such assessment;
(2) Every parlor-car company and sleeping-car company owning parlor and sleeping cars (except those owned by railroad companies and described in paragraph (1) of this subsection) which are operated in the District over or upon the tracks of any railroad or terminal company, shall report to the Mayor of the District of Columbia the total number of miles traveled by all such cars, and also the miles traveled by such cars within the District, during the calendar year next preceding the tax date; the total full and true value of all such cars so used as of the last day of the calendar year next preceding the tax date; and such other facts and information as the Mayor may require. The taxable portion of the value of the cars owned by any such company and used within the District shall be determined by applying to such value the ratio between the mileage traveled by such cars in the District and the total mileage traveled by such cars within and without the District;
(3)(A) Every car company, mercantile company, corporation or individual (other than railroad, parlor-car, and sleeping-car companies described in paragraphs (1) and (2) of this subsection) owning or leasing any stock cars, furniture cars, fruit cars, refrigerator cars, meat cars, oil cars, tank cars, or other similar cars, which are run over or upon the line or lines of any railroad or terminal company in the District of Columbia, shall furnish to the Mayor of the District of Columbia, on forms prescribed by the Mayor, a true, full, and accurate statement, verified by the affidavit of the officer or person making the same, showing the aggregate number of miles made by their several cars over or upon the several lines of railroad within the District of Columbia during the calendar year next preceding the tax date; the average number of miles traveled per day within the District of Columbia by the cars covered by the statement in the ordinary course of business during the year; and such other pertinent facts and information as the Mayor may require.
(B) Every railroad company whose lines run through or into the District of Columbia shall annually furnish to the Mayor a statement showing the name and address of every car company, mercantile company, corporation, or individual (other than railroad, parlor-car, and sleeping-car companies described in paragraphs (1) and (2) of this subsection) whose cars made mileage over its tracks in the District of Columbia during the calendar year next preceding the tax date, and the total number of miles made within the District of Columbia by each during said period.
(C) It shall be the duty of the Mayor to ascertain from the best and most reliable information that can be obtained and from said statements the number of cars required to make the total mileage of each such car company, mercantile company, corporation, or individual within the District of Columbia during the period aforesaid, and to ascertain and fix the valuation upon each particular class of such cars, and the number so ascertained to be required to make the total mileage within the District of Columbia of the cars of each such car company, mercantile company, corporation, or individual within said period shall be assessed against the respective car companies, mercantile companies, corporations, or individuals. The valuation thus obtained shall be the full and true value and shall be the taxable portion of the cars owned by any such car company, mercantile company, corporation, or individual and used within the District of Columbia.
(d) All of the provisions of law relating to the filing of returns, assessment, payment, and collection of personal property taxes in the District of Columbia shall be applicable to the companies described in the foregoing subsections.
(e) Any individual, partnership, unincorporated association, or corporation aggrieved by any assessment of taxes made pursuant to the provisions of this section may appeal therefrom to the Superior Court of the District of Columbia in the same manner and to the same extent as set forth in §§ 47-3303, 47-3304, and 47-3306 to 47-3308.
(f) The provisions of this section shall be applicable to the taxable year beginning July 1, 1945, and each taxable year thereafter.
Subchapter II. Procedure.
§ 47–1521. Definitions.
For the purposes of this subchapter, the term:
(1) "Computer software" means a set of statements or instructions that when incorporated in a machine-usable medium is capable of causing a machine or device having information processing capabilities to indicate, perform, or achieve a particular function, task, or result.
(1A) “District” means the District of Columbia.
(2) “Mayor” means the Mayor of the District of Columbia.
(3) “Person” means an individual, firm, partnership, society, club, association, joint-stock company, corporation (domestic or foreign), estate, receiver, trustee, assignee, referee, and a fiduciary or other representative, whether or not appointed by a court, and any combination of individuals acting as a unit.
(4) “Tangible personal property” means tangible goods and chattels, including computer software, used or held for use in any business, activity, or occupation whether or not operated for profit.
(5) “Tax year” means the 12-month period beginning July 1st and ending the next June 30th.
(6) “Trade or business” means engaging in, carrying on, and winding up the affairs of a trade, business, profession, vocation, calling, or commercial activity whether or not operated for profit, and includes performing the duties of a public office, the leasing or renting of real or personal property, whether or not the property is leased or rented directly or through an agent and whether or not services are performed in connection with the property, and any other activity carried on or engaged in for livelihood or profit.
(7) “Use in a trade or business” means use of property in commencing, conducting, continuing, or liquidating a trade or business.
§ 47–1522. Levy of annual tax on personal property.
(a) Each year the district shall levy a tax against every person on the tangible personal property owned or held in trust in that person’s trade or business in the District. The rate of tax shall be $3.40 for each $100 of value of the taxable personal property, in excess of $225,000 in value.
(b) Construction equipment, vehicles, trailers, tools, and any other tangible personal property brought into the District on a temporary basis and used in a trade or business shall be taxed for the period that the property was physically located in the District.
(c) Persons owning leased personal property having a taxable situs in the District shall be subject to the tax and to the filing requirement of § 47-1524(b).
(d) Real property improvements that do not become an integral part of the realty shall be subject to the personal property tax imposed by subsection (a) of this section.
(e) Persons owning or holding in trust any tangible personal property located or having a taxable situs in the District on July 1st of the tax year that is used or available for use in a trade or business, whether or not operated for profit, shall file a return according to § 47-1524(b).
§ 47–1523. Reporting requirement; valuation of property.
(a) The full and true value and the current value of tangible personal property, including taxable leasehold improvements, having a taxable situs in the District shall be reported on the return. The full and true value shall be the original costs of the tangible personal property in an arms-length transaction, computed as of July 1st of the tax year. The current value of the tangible personal property shall be the full and true value less a reasonable allowance for straight line depreciation in accordance with rules promulgated by the Mayor and the provisions under subsections (b), (c), (d), and (e) of this section. Tangible personal property items with a useful life of one year or less shall be reported at cost. No proration of value shall be permitted in anticipation of the disposition of an item of tangible personal property. In no event shall the current value reported be less than 25% of the original cost or exchange value of the tangible personal property, except as permitted under subsection (b) of this section.
(b) Qualified technological equipment shall be depreciated at the rate of 30% per year, and shall not be depreciated to a value less than 10% of original cost or exchange value.
(c) For personal property tax years beginning July 1, 2000, taxpayers who acquired qualified technological equipment on or before June 30, 2000, may calculate the current value of those assets as if the depreciation rate provided in subsection (b) of this section was used from the acquisition date; however, there shall be no credit or refund of tax paid in earlier tax years under the prior depreciation rate.
(d) For the purposes of this section:
(1) “Computer” means a programmable electronically activated device that is capable of accepting information, applying prescribed processes to the information, and supplying the results with or without human intervention, and that consists of a central unit containing extensive storage, logic, arithmetic, and control capabilities.
(2) “Qualified technological equipment” means any computer or related peripheral equipment other than the type mentioned in subsection (e)(1) of this section.
(3) “Related peripheral equipment” means any auxiliary machine (whether on-line or off-line) that is designed to be placed under the control of a computer, and operate in conjunction with such computer.
(e) For the purposes of this section:
(1) “Computer” or “related peripheral equipment” shall not include:
(A) Any equipment that is an integral part of other property that is not a computer;
(B) Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar devices;
(C) Equipment of a kind primarily used for amusement or entertainment of the user;
(D) Mainframe computers that are capable of simultaneously supporting multiple transactions and multiple users, and having an original cost in excess of $500,000; including any additional memory units, tape drives, disk drives, power supplies, cooling units, and communication controllers that are related peripheral equipment to such computers; or
(E) Computers used in operating industrial processing equipment, equipment used in a computer assisted manufacturing system, equipment used in computer assisted design or engineering system integral to an industrial process, or subunit or electronic assembly comprising a component in a computer integrated industrial processing system.
§ 47–1524. Form of tax return; filing; extensions.
(a) The form of the personal property tax return shall be prescribed by the Mayor and the return shall conveniently document the information that the Mayor considers necessary for the proper administration of the District personal property tax system.
(b) The taxpayer shall not file the return before July 1st, but shall file the return before August 1st, of the tax year. The total amount of tax required to be shown on the return is due at the time the return is required to be filed.
(c) The Mayor may grant a reasonable extension of time for filing a return when good cause for the extension exists. Any request for an extension of time for filing a return shall be in writing, made before August 1st of the tax year, and accompanied by payment of the tax.
(d) The extension permitted under subsection (c) of this section shall not be granted for more than 3 months after July 31st of the tax year.
§ 47–1525. Filing returns; notice to party; records; examination. [Repealed]
Repealed.
§ 47–1526. Assessment; collection; deadline; fraudulent returns; extensions. [Repealed]
Repealed.
§ 47–1527. Failure to file or fraudulent return; collection and enforcement.
(a) If a person fails to make or file a return required or files a fraudulent return, the Mayor shall make the return for the person based upon information that the Mayor may obtain through testimony or other sources.
(b) A return made according to subsection (a) of this section and signed by the Mayor shall be sufficient for all purposes related to the collection and enforcement of the personal property tax.
§ 47–1528. Deficiency; request for hearing.
Assessments of any deficiencies in the tax due under this chapter, or any interest and penalties thereon, shall be governed by § 47-4312.
§ 47–1529. Acceleration of due date; distraint of taxpayer’s property. [Repealed]
Repealed.
§ 47–1530. Personal debt liability; priority; collection; “person” defined. [Repealed]
Repealed.
§ 47–1531. Failure to file; fraudulent return; penalties and interest. [Repealed]
Repealed.
§ 47–1532. Overpayment; credit or refund; time for filing; interest. [Repealed]
Repealed.
§ 47–1533. Appeal from assessment or denial of claim for refund.
Any person aggrieved by any assessment of a deficiency in tax and any person aggrieved by the denial of a claim for refund may, within 6 months from the date of the assessment of the deficiency or from the date of the denial of a claim for refund, as the case may be, appeal to the Superior Court of the District of Columbia, in the same manner and to the same extent as set forth in §§ 47-3303, 47-3304, 47-3306, 47-3307, and 47-3308.
§ 47–1534. Violations; penalties; prosecutions. [Repealed]
Repealed.
§ 47–1535. Rules; powers of Mayor.
(a) The Mayor shall issue rules to implement the provisions of this subchapter pursuant to subchapter I of Chapter 5 of Title 2.
(b) In addition to the other powers granted the Mayor under this subchapter, the Mayor may:
(1) For reasonable cause, waive penalties and interest in whole or in part;
(2) Compromise disputed claims in regard to the personal property tax whenever any doubt arises as to the liability or collectability of the tax; and
(3) Request information from the Internal Revenue Service of the Treasury Department of the United States regarding any person for the purpose of assessing the personal property tax.
§ 47–1536. Enforcement. [Repealed]
Repealed.
