Yesterday afternoon, DC Council passed the measure to tax co-ops similarly to condos. Co-ops will now have to pay a "economic interest tax" according to Ed Krauze of GCAAR. The "economic interest tax" will implement the same rates that DC uses for real property: 1.1% for sales below 400K and 1.45% for sales above 400K. This measure was included in the Fiscal Year 2010 Budget Support Act of 2009.
The Murphy Team does a lot of business with co-ops in Foggy Bottom. I'm sure there's going to be a major outcry about the change. Oh boy.
Both DC Mud and Urban Turf reported on the possibility of this measure last week.
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