Photo by christaki.Vince Gray’s counter-proposal to Mayor Adrian Fenty’s plan to clear a $188 million budget deficit certainly had some interesting highlights, as we outlined earlier this morning: furloughs for D.C. government employees, a restorations of funds to the Healthy Schools Initiative, streetcar money remaining untouched and much more. But one aspect of the budget amendments had us more curious than the rest — what initially appeared to be a permanent property tax abatement for the International House of Pancakes franchise, located at 1523 Alabama Avenue SE. But as it turns out, that isn’t the case.
The introduction to an amendment in the legislation drafted by Council Chair Vince Gray states an intention “to permanently immortalize an exemption from real property taxation for the International House of Pancakes Restaurant # 3221 located on Lot 819, Square 5912, in Ward 8.” However, the “IHOP Restaurant #3221 Tax Exemption Clarification Act of 2010” continues:
The real property described as Lot 819, in Square 5912 , known as the International House of Pancakes Restaurant #3221, owned by CHR, LLC, and leased to Fathers and Sons, LLC, shall be exempt from the tax imposed by Chapter 8 of this title for the period beginning October 1, 2007, and ending September 7, 2009. The tax exemption pursuant to this section shall be in addition to, and not in lieu of, any other tax relief or assistance from any other source applicable to the International House of Pancakes Restaurant located at the real property described as Lot 819, Square 5912.”
It initially appeared as if the Council might be dealing two different proposals, one which gave that the IHOP would receive a permanent tax exemption, and one in which the property would be exempt from taxation between the already-passed period of October 1, 2007 through September 7, 2009. But moments ago, Michael Price, Councilmember Kwame Brown’s press secretary, confirmed with DCist that the tax break is only applicable for the dates outlined in the body of the bill.
Price added that the tax abatement had already been approved by the Council.
Of course, this news won’t quell the debate between those who are in favor of extending tax breaks to encourage business east of the Anacostia River whenever possible, and those who don’t believe that the District should be kowtowing to a national pancake peddler, especially in times of fiscal emergency.