Photo by michael starghill.If you thought that Councilmember Jack Evans (D-Ward 2) would ride the good vibes from his wedding last Saturday (requisite wedding photo inside Georgetown trolley found here) to a positive start at today’s legislative meeting of the D.C. Council, well, you were mistaken. Evans came out swinging today after a piece of proposed legislation written by Tommy Wells (Ward 6) — marked up by the Committee on Finance and Revenue, which Evans chairs — caused some serious blowback.
Here’s what appears to have happened. Union Station is exempt from direct District taxation, since it is federal property. However, the businesses inside the building are required to pay what is called a possessory interest tax. But the District has no real way to enforce that tax — most federal agencies refuse to pay it, anyway. Last year, Wells suggested eliminating that tax and installing an alternative payment system in its place. That bill was altered while under review in the Committee on Finance and Revenue, however, and turned into legislation that would only remove the possessory interest tax, half of what Wells was proposing. As a result of the confusion, Council Chairman Vince Gray pulled a vote on the legislation from today’s agenda, a move which Wells supported.
The bill is highly controversial. A tax abatement to the tune of about $34 million, beginning in fiscal year 2016, would eliminate some potential much-needed tax revenue and is financially sketchy (the tax break wouldn’t technically register in the city’s finances, because the city only measures them four years at a time). Yesterday, the Washington Post penned this report which closely linked Evans to the legislation, saying that the bill was “submitted” by both Evans and Wells.