# D.C. Code § 42-1102.02: Transfer of economic interest defined

> District of Columbia · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1102.02

## Section

- **Citation:** D.C. Code § 42-1102.02
- **Heading:** Transfer of economic interest defined
- **Jurisdiction:** District of Columbia
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** DC Code / Title 42 / Chapter 11 / § 42-1102.02

## Text

(a) A transfer of an economic interest in real property occurs upon the conveyance, vesting, granting, bargaining, sale, or assignment, directly or indirectly, of a controlling interest by 1 or more persons or by 1 or more transactions, within any 12-month period, in any corporation, partnership, association, trust, or other entity that, during the 12-month period immediately preceding the transfer of an economic interest in real property:
(1) Derives more than 50% of its gross receipts from the ownership or disposition of real property in the District; or
(2) Holds real property in the District that has a value comprising 80% or more of the value of its entire tangible asset holdings.
(b) For the purposes of subsection (a) of this section, a transfer of a controlling interest includes the aggregate of the transfer of any legal, equitable, beneficial, or other ownership interest in:
(1) Any entity described in subsection (a) of this section;
(2) Any entity that is a partner in, shareholder in, or beneficiary of, an entity described in subsection (a) of this section; and
(3) Any other entity:
(A) That derives, directly or indirectly, any portion of its receipts from the ownership of any entity described in subsection (a) of this section; or
(B) Has asset value that includes, directly or indirectly, any legal, equitable, beneficial, or other ownership interest in any entity described in subsection (a) of this section.
(c) Notwithstanding any other provision of this section, as of October 1, 2009, every transfer of an interest in a cooperative housing association in connection with the grant, transfer, or assignment of a proprietary leasehold or other proprietary interest, in whole or in part, shall be a transfer of an economic interest.

## Nearby sections

- [D.C. Code § 42-1101 § 42-1101. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1101.md)
- [D.C. Code § 42-1102 § 42-1102. Deeds exempt from tax.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1102.md)
- [D.C. Code § 42-1102.01 § 42-1102.01. Sales or assignments of instruments on secondary market exempt from tax.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1102.01.md)
- [D.C. Code § 42-1102.02 § 42-1102.02. Transfer of economic interest defined.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1102.02.md)
- [D.C. Code § 42-1103 § 42-1103. Imposition of tax; rate; return; contents; liability for tax; extension of period for filing, and waiver of, return.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1103.md)
- [D.C. Code § 42-1104 § 42-1104. Computation of tax where absence of or no consideration; when fair market value to be shown on return; consideration on deeds of trust or mortgages.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1104.md)
- [D.C. Code § 42-1105 § 42-1105. Investigation by Mayor; summons; production of books, records, etc.; compelling attendance and production; refusal or obstruction of investigation.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1105.md)
- [D.C. Code § 42-1106 § 42-1106. No recordation until return filed and tax paid; deeds evidencing transfer of economic interest in real property in District.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1106.md)
- [D.C. Code § 42-1107 § 42-1107. Burden on taxpayer to prove deed exempt from tax.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1107.md)
- [D.C. Code § 42-1108 § 42-1108. Deficiencies in tax; notice of determination; protests; hearings; time for payment.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1108.md)
- [D.C. Code § 42-1108.01 § 42-1108.01. Enforcement.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1108.01.md)
- [D.C. Code § 42-1109 § 42-1109. When Mayor may compromise tax.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1109.md)
- [D.C. Code § 42-1110 § 42-1110. When Mayor may compromise tax; written agreement as to tax liability; finality thereof; penalties for certain acts in relation to compromises and agreements; prosecutions.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1110.md)
- [D.C. Code § 42-1111 § 42-1111. Mayor may compromise penalties and adjust interest.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1111.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_DC_T42_C11_S42-1102.02. Check the current official text before relying on it. Not legal advice.