Councilman urges panel to ‘rethink’ D.C.’s real estate appeals board
By: Bill Myers
Examiner Staff Writer
February 9, 2009
D.C. Councilman Phil Mendelson wants to scrap the city’s real estate appeals board in the wake of an ex-board member’s accusations that the reigning chairwoman has “politicized” the body.
“Frankly, I think we need to rethink the board,” Mendelson, D-at large, told The Examiner. “The board has been struggling for years and it’s obviously gotten worse.”
Mendelson said it’s time to bring in real estate professionals to hear property appeals.
His comments were in reaction to a letter of resignation from real estate board member Lawrence Smith that was circulated among council members. In it, Smith blasted Mayor Adrian Fenty’s hand-picked chairwoman, Towanda Paul-Bryant, for incompetence and “the deliberate politicization” of the Board of Real Property Assessments and Appeals.
Property owners must pay taxes based on a percentage of the property’s assessed value. Those who think the city erred in its assessment can appeal to the board.
Thousands of cases are sent to the 18-member board each year, with appeals involving tens of millions of dollars in tax revenue annually. At least one-quarter of D.C.’s $5 billion-plus revenues come from property taxes.
Smith accused Paul-Bryant of setting aside numerous cases despite legal deadlines requiring an answer. Some real estate experts said privately that hundreds of cases were backed up in the appeals system.
The Examiner tried to reach Paul-Bryant and Fenty’s spokeswoman, but neither responded to requests for comment.
“The circumstances are appalling,” Mendelson said of the board. “Not only is there not enough sunlight, but Mr. Smith’s allegations are deeply disturbing.”
The real estate tax system is rigged in favor of wealthy developers, Mendelson said, and should be fundamentally reformed.
“The commercial property owners hire these big-gun lawyers who come and take advantage of the system,” Mendelson said. “They know the system and its flaws, and they exploit the flaws.”
