Summary#
B26-0876, the Thurgood Marshall Center Trust, Inc., Tax Exemption Amendment Act of 2026, would amend Title 47 of the D.C. Code, including its property-tax provisions. Its stated goal is to help preserve the Thurgood Marshall Center for Service and Heritage; the bill would create a property-tax exemption and forgive certain past charges for the specified property.
- The property at 1816 12th Street, N.W., including its improvements, would be exempt from the Chapter 8 tax from January 1, 2021, through December 31, 2026, as long as the Trust continues to own it for charitable activities.
- As of the law’s effective date, related property taxes, interest, penalties, fees, and other charges assessed for the covered period would be forgiven. Payments made for that period would be refunded.
- Any transfer, assignment, or other disposition of all or part of the property—including assignment of a leasehold interest or a sublease—would be exempt from taxes under the cited D.C. Code provisions. This transfer exemption is not expressly given the same ownership-and-charitable-purpose condition.
- The bill is at the introduced stage, so it is not law; passage is uncertain.
What it means for you#
- Thurgood Marshall Center Trust: If the bill becomes law and the ownership-and-purpose condition is met, the Trust would receive the specified property-tax exemption and forgiveness or refunds for the covered period.
- Nonprofit tenants and community groups: The bill does not require the Trust to reduce rents or change its services. The sponsor’s introduction statement says the Trust leases space to nonprofit tenants below market rents, but the bill does not set rent rules.
- District taxpayers: The District would forgo the covered property-tax revenue and might have to refund payments. The bill also exempts the listed property transactions from taxes under the cited Code provisions.
- Other property owners: The exemption is limited to the identified property. The bill does not create a general tax exemption for other historic or nonprofit properties.
Money#
No cost estimate is included in the supplied material.
- The bill would remove the specified property-tax liability for the covered period and require forgiveness of related charges assessed by the effective date.
- It would require refunds for payments made for that period.
- It would exempt specified transfers and other dispositions from taxes under the cited Code provisions.
- The bill refers to a fiscal impact statement in a committee report, but that report and its estimate were not supplied. No publicly available information.
What is unclear#
- The supplied material does not include the current Code provisions or committee fiscal report, so the existing tax treatment and estimated revenue or refund amounts could not be verified.
- The bill does not define “charitable activities” or say how continued qualifying use would be checked.
- It does not explain why the transfer exemption is not expressly subject to the ownership-and-charitable-purpose condition that applies to the property-tax exemption.
- The text repeats the subsection label “(b),” which leaves the organization of the provisions unclear.
- The bill does not set out a process or timeline for claiming refunds or resolving disputed amounts.
Case for#
- The sponsor’s introduction statement describes a historic building that houses nonprofit and community activities, and says rising property taxes threaten its affordability and preservation.
- A tax exemption tied to continued Trust ownership for charitable activities could reduce the building’s tax burden while preserving that condition.
- Forgiving past charges and refunding payments could address the stated burden for the full covered period, rather than only future tax bills.
Case against#
- The bill does not provide a cost estimate, though it would waive taxes and require refunds; the effect on District revenue is therefore unclear.
- The transfer exemption covers a broad set of dispositions, including leasehold assignments and subleases, without expressly repeating the charitable-use condition.
- The bill does not set out how charitable use or continued ownership would be verified, or how refunds would be handled.
- The bill’s provisions end the property-tax exemption on December 31, 2026, and do not explain what tax treatment would apply after that date.