A progressive tax on high-value properties has been introduced by Councilmember David Grosso in order to generate revenue for D.C.’s budget priorities.
“D.C. has experienced tremendous economic growth in the past decade, but not everyone has shared in that prosperity,” Grosso, who is also the chairperson of the Committee on Education, said in a press release on May 13.
“Instead, the income and wealth gap has widened in that period and is starkest along racial lines.”
According to the press release, the poorest 20 percent households in the city have an annual income 7.5 times less than the wealthiest 20 percent.
The councilmember believes that a high-value property tax would help reduce racial inequity by raising resources from those most well off for public investments.
Grosso also stated that the average wealth of white households was 81 times that of the average Black household, noting that investments in education, ending homelessness and preventing violence are insufficient.
“The richest 1 percent of D.C. households pay less in property taxes as a share of family income than households at any other income range–just 1.7 percent compared to 3.6 percent for our lowest income families. My proposal makes our property tax structure more equitable by increasing the rates on those at the top,” he added.
Councilmember Brianne Nadeau has become a co-introducer of the legislation, which will be referred to the Committee on Finance and Revenue.
In the meantime, the District of Columbia Association of Realtors (DCAR) hailed the new bill as a “victory for homeowners.”
A victory for DC homeowners!
The proposed emergency budget amendment to increase annual taxes on DC homes valued at $1 million and up has been withdrawn. A bill has officially been introduced, with the new threshold starting at $1.5 million.
Read more: https://t.co/oZlbglUw6T
— DCAR (@dcarealtors) May 15, 2019