Does the World Bank have to pay DC real property tax on the buildings it owns in Washington, and if not, does the exemption start when the bank bought the property or only later?

Plain-English summary

The International Bank for Reconstruction and Development, commonly known as the World Bank, owns property in downtown Washington, DC. In 1985, the DC Department of Finance and Revenue asked Corporation Counsel Inez Smith Reid two questions: is the World Bank exempt from DC real property tax, and if so, does the exemption start at acquisition or only after the Bank applies for it?

The Corporation Counsel answered yes to the exemption and confirmed that it runs from the date of acquisition, not from any later application or fiscal-year cutoff. Two pieces of property were specifically at issue: Lot 18 in Square 121 (acquired July 9, 1980) and Lot 818 in Square 168 (acquired March 30, 1984). Both were exempt from acquisition forward.

The legal basis is the International Organizations Immunities Act (IOIA), 22 U.S.C. § 288 et seq. Section 1 of the IOIA authorizes the President to designate by Executive Order which international organizations qualify for the privileges and immunities provided by the Act. The World Bank has been so designated. Section 6 of the Act (22 U.S.C. § 288c) provides that designated international organizations "shall be exempt from all property taxes imposed by, or under authority of, an Act of Congress, including such Acts as are applicable to the District of Columbia or the Territories." Because DC's real property tax is imposed under congressional authority, the IOIA exemption applies.

On timing, DC regulation 9 D.C.M.R. § 322.3 lists categories of property that are exempt from the requirement to file a written application for a property tax exemption. Property "specifically exempt by Act of Congress" is on that list. Because the World Bank's property is exempt by federal statute (the IOIA), it does not need to apply, and so the exemption is effective from acquisition rather than from any later filing.

Currency note

This opinion was issued in 1985. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Q: Is every international organization exempt from DC property tax?
A: The opinion said the IOIA permits the President to designate organizations meeting the Act's definition, and identified the World Bank as one such designee. It did not address the tax status of other named organizations.

Q: Does the exemption cover property the World Bank leases to private tenants?
A: The opinion addressed two properties owned by the World Bank. It did not analyze the tax status of property leased to private tenants.

Q: Did the opinion exempt the World Bank from every DC tax?
A: No. It addressed real property tax on two World Bank properties. The IOIA provision it quoted exempts designated international organizations from property taxes imposed by or under authority of an Act of Congress, including Acts applicable to DC. The opinion did not decide the Bank's liability for other taxes.

Q: When did the property at Lot 18 in Square 121 become exempt?
A: July 9, 1980, the date the Bank acquired it.

Q: When did Lot 818 in Square 168 become exempt?
A: March 30, 1984, the date the Bank acquired it.

Q: What if the property was previously taxed during a private owner's tenure and the assessment is still on the books?
A: The opinion held that the World Bank's exemption began when it acquired each property. It did not address a previous owner's tax liability.

Q: Does the opinion establish the World Bank's tax treatment today?
A: No. It addressed the exemption and its start date under the law considered in 1985. It did not address later amendments or designations.

Background and statutory framework

The opinion relied on the International Organizations Immunities Act's provisions for presidential designation and property tax exemption. It did not analyze the Act's other privileges and immunities.

The Act is structured around presidential designation. Under § 1 (22 U.S.C. § 288), the President identifies covered organizations by Executive Order. The criteria are: a public international organization in which the United States participates pursuant to a treaty or by act of Congress, or for which Congress has authorized appropriations. Once designated, the organization receives the package of privileges, exemptions, and immunities specified in subsequent sections of the Act.

The opinion identified the World Bank as the International Bank for Reconstruction and Development and cited the historical note following 22 U.S.C. § 288 for its designation.

Section 6 (22 U.S.C. § 288c) provides the property tax exemption: "International organizations shall be exempt from all property taxes imposed by, or under authority of, an Act of Congress, including such Acts as are applicable to the District of Columbia or the Territories." The opinion applied this provision to the World Bank's two DC properties.

DC's implementing framework recognizes that some property tax exemptions are automatic and require no local application. 9 D.C.M.R. § 322.3 lists those automatic exemption categories, including (5) "Property specifically exempt by Act of Congress." The IOIA is exactly such an Act. Because no application is required, the exemption begins at acquisition rather than at application.

Citations and references

Statutes:

• International Organizations Immunities Act, 22 U.S.C. § 288
• 22 U.S.C. § 288c (property tax exemption)

Regulations:

• 9 D.C.M.R. § 322.3 (categories exempt from written application requirement)

Other authorities:

• Historical Note following 22 U.S.C. § 288 (list of presidentially-designated public international organizations)

License

This opinion is published by the Office of the Attorney General for the District of Columbia. Per the DC.gov terms of use, content is licensed under Creative Commons Attribution 3.0, which permits commercial use, redistribution, and modification with attribution.

Source

• Original PDF: https://oag.dc.gov/sites/default/files/2018-02/Opinion-July-2014-Real-Property-Exemption-Status.pdf

Original opinion text

Government of the District of Columbia
OFFICE OF THE CORPORATION COUNSEL
District Building
Washington, D.C. 20004

In Reply Refer to: OCC/CDD/FS/JER/c

May 24, 1985

OPINION OF THE CORPORATION COUNSEL

Subject: Real Property Exemption Status of the International Bank for Reconstruction and Development (World Bank)

Melvin W. Jones
Director, Department of Finance and Revenue
Room 4136, Municipal Center
300 Indiana Avenue, N.W.
Washington, D.C. 20001

Dear Mr. Jones:

You have requested an opinion with respect to the entitlement of the World Bank to a real property tax exemption, and if such an exemption should exist, the timing of its commencement. For the reasons that follow, I have concluded that the World Bank is entitled to such an exemption and that that exemption commences from the date of acquisition of the property.

Entitlement to Exemption

The World Bank owns two pieces of property which are the subject of this discussion. They are Lot 18 in Square 121, acquired on July 9, 1980, and Lot 818 in Square 168, acquired on March 30, 1984.

Section 1 of the International Organizations Immunities Act [22 U.S.C. § 288 (1979)] authorizes the President, by appropriate Executive Order, to designate international organizations meeting certain definitional criteria to enjoy the privileges, exemptions and immunities provided for in the Act.

[Footnote: An international organization is defined by the Act as meaning: "a public international organization in which the United States participates pursuant to any treaty or under the authority of any Act of Congress authorizing such participation or making an appropriation for such participation."]

The World Bank has been so designated by Executive Order as meeting these criteria and therefore entitled to enjoy the privileges, exemptions and immunities conferred by the Act. See Historical Note following 22 U.S.C. § 288, listing all Executive Orders designating such organizations: "Public International Organizations Entitled to Enjoy Certain Privileges, Exemptions, and Immunities . . . International Bank for Reconstruction and Development . . . ."

Section 6 of the Act sets forth the exemption from property taxes:

> International organizations shall be exempt from all property taxes imposed by, or under authority of, an Act of Congress, including such Acts as are applicable to the District of Columbia or the Territories. [22 U.S.C. § 288c (1979).]

Timing of Exemption

By regulation, the Department has exempted certain properties from the requirement of a written application for a property tax exemption. 9 D.C.M.R. § 322.3. If such properties are discharged from an obligation to apply, it follows that their exemption would run from date of acquisition rather than from July 1 following the date of acquisition.

[Footnote: 9 D.C.M.R. § 322.3 provides: "The following properties are exempt from the requirement for a written application for property tax exemption: . . . (5) Property specifically exempt by Act of Congress."]

Conclusion

Accordingly, it is clear that the World Bank is an international organization falling within the ambit of the International Organizations Immunities Act, and that its two pieces of property, namely Lot 18 in Square 121 and Lot 818 in Square 168, qualify for an exemption from real property taxes from the dates of their respective acquisitions, July 9, 1980, and March 30, 1984.

Sincerely,

Inez Smith Reid
Corporation Counsel, D.C.