Washington, D.C. Council Opens Tax Increase Debate Amid Looming Budget Gap
The D.C. Council's Committee of the Whole held a hearing on October 16 on a range of possible tax increases, including the Pied-à-Terre Property Tax Amendment Act of 2026, the first time in years lawmakers have dived into the details of whether and how to raise more revenue.
Ward 3 Councilmember Matt Frumin, who introduced the second-home tax proposal, said the city faces a big shortfall that must be solved by cuts, revenue increases or a combination of the two. The Office of Revenue Analysis estimates the new Class 1C designation would apply to roughly 600 properties out of 371,606 housing units in the District, and would raise more than $130 million over the four-year financial plan to support homeless services, education, health care and public safety. The bill exempts properties left unoccupied for reasons other than tax avoidance, including those owned by federal appointees or members of Congress.
According to recent estimates from the Chief Financial Officer, the District has lost 47,000 jobs year over year, including 28,000 federal jobs since January 2025, with unemployment at 6.1 percent, office vacancy at 18.5 percent and building permits down 23 percent. A new mayor is set to take office in January, facing a likely $600 million budget deficit.
Published by GSM · USA (original Chinese edition)
Photo: 图：华盛顿特区约翰·A·威尔逊大楼（区政府大楼）一带航拍。图片来源：Carol M. Highsmith，Wikimedia Commons，公共领域。Photo: Aerial view of downtown Washington, D.C., including the John A. Wilson Building. Image: Carol M. Highsmith, via Wikimedia Commons, public domain.
