What is a BID Tax?
A BID is funded through a self-imposed additional tax levy on non-exempt property owners in order to provide a higher level of services for a designated area on behalf of those property owners. At the Capitol Riverfront BID’s last 5-year renewal in 2017, the BID membership voted to adjust the BID tax rates. Following multiple public hearings, the city council and executive office of the mayor approved the rate adjustments submitted by the BID membership as part of the BID's five year business plan.
The Capitol Riverfront BID tax is assessed for nonexempt properties according to the following formulas:
- $0.38 per land square foot for vacant and/or unimproved land
- $0.17 per land square foot for lots and buildings which have a certificate of occupancy or other District license indicating that the land or building has an existing active industrial, utility or storage use
- $0.08 per land square foot for lots located within the right of way for the proposed realignment of the Frederick Douglass Memorial Bridge
- $0.17 per gross square foot for commercial buildings
- $100.00 per hotel room annually
- $126.00 per unit annually for nonexempt residential properties. By law, residential property with ten (10) units or less are not subject to the BID tax. Additionally, the BID tax is NOT applied to publicly subsidized housing and/or affordable housing units leased or sold below market rate.
- Certain vacant land parcels on lots of greater than 88,000 square feet are grandfathered at older rates.
- Certain small commercial buildings less than 8,000 gross square feet may be grandfathered at lower rates from previous authorizations.
What to Know
BID taxes are billed twice a year at the same time as real property taxes - September and March of every year. The BID tax is billed six months in advance:
- The September billing is due on September 15th for October 1st through March 31st
- The March Billing is due on March 31st for April 1st through September 30th
Beginning in March 2021, BID tax bills are mailed directly from the Office of Tax and Revenue and are included as part of the Real Property tax bill for owners of record. If you are a condo owner and have an escrow agent pay your real property tax bill, that agent may not be aware of the BID tax obligation. You should reach out to them, or consider sending a payment for your BID taxes directly to OTR at the following address:
Government of the District of Columbia
Office of Tax and Revenue
Real Property Tax Administration
P.O. Box 98095
Washington, DC 20090-8095
The maximum amount for any one lot or tax bill is capped at $100,000 annually.
BID Taxes are now payable online: The DC Office of Tax and Revenue (OTR) has implemented an eCheck payment option for property owners to pay Real Property Tax and BID taxes online. The online payment system is convenient and easy to use 24 hours a day, 7 days a week at no charge to the property owner. Payments are made only when authorized, and BID tax payers will receive a receipt and a reference number as proof of payment.
Total FY 2021 estimated revenues for the Capitol Riverfront BID are approximately $2,700,000.
For additional information regarding a Capitol Riverfront BID tax bill please contact 703.283.1196 or owen@capitolriverfront.org.