Letter to the Honorable Muriel Bowser, Mayor of the District of Columbia, the Honorable Phil Mendelson, Chairman of Council of the District of Columbia, and the Honorable Jeffrey S. DeWitt, Chief Financial Officer of Disrict of Columbia - Repair of Foreign Missions Buildings

Letter

Dear Mayor Bowser, Chairman Mendelson and Mr. DeWitt:

As you may know, I recently sent the enclosed letter to the State Department highlighting the state of disrepair of many buildings owned by foreign missions in the District of Columbia, and urging it to take action to improve the conditions of these properties. However, I believe that there are actions that the city itself can take to address the increasing number of such properties in the District.

First, under the Home Rule Act, the Foreign Sovereign Immunities Act, the Foreign Missions Act, Supreme Court precedents (e.g., 551 U.S. 193 (2007)), and local D.C. tax law, it appears the city may have the authority to tax foreign property no longer used for diplomatic purposes -- such as those properties that housed former diplomats but have since been abandoned. Other jurisdictions, such as New York City, have taxed such foreign properties and have gone so far as to place tax liens on some of these properties, an action that was upheld by the Supreme Court. Taxing foreign properties could incentivize the foreign governments to improve the conditions of their properties.

Second, the Council may want to consider whether the provision in the D.C. Code exempting from taxation "[p]roperty belonging to foreign governments and used for legation purposes," D.C. Code § 47-1002(3), goes beyond what is required by federal law and the Home Rule Act. If the provision does, I would urge you to consider amending or repealing it to give D.C. more taxing authority.

I appreciate your attention to this matter, and look forward to working with you on this important issue.

Sincerely,

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