Retail Service Station Transfer Tax Repealed in DC
Once again, gas station owners are on equal footing with all other holders of Washington, DC real estate. The "Fiscal Year 2016 Budget Support Act of 2015," which became effective on October 1, eliminated a special transfer tax of 5% (in addition to the standard 1.45% transfer tax assessed) on the sale of all gas stations.
The tax, imposed on June 1, 2009, significantly increased the transactional costs of gas station owners and prospective purchasers regarding the purchase and sale of gas stations in DC and adversely affected many small business owners. The industry had fought for years before finally convincing the DC Council to repeal the tax.
Alison Rind is a commercial lending attorney at Lerch, Early & Brewer who represents commercial lenders in loan transactions and other commercial matters, including participants in SBA and other government guaranteed lending programs. For more information about the effect of DC repealing the transfer tax, contact Alison at firstname.lastname@example.org or (301) 657-0750.