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B 26-0666

Soul of the City Business Improvement District Congressional Review Emergency Amendment Act of 2026

26th Council Period (2025-2026) Introduced by Trayon White

Forms the Soul of the City BID and imposes temporary BID taxes on defined properties for a short period, pending mayoral approval.

Retained by the Council
0
WeVote Research Nonpartisan
Bill Summary · B 26-0666

Summary of Bill B26-0666: Soul of the City BID Congressional Review Emergency Amendment Act of 2026

Purpose and Intent

  • Establishes the Soul of the City Business Improvement District (BID) on an emergency basis, subject to mayoral review and approval.
  • Purpose is to authorize the formation and administration of the Soul of the City BID and to impose BID taxes for a limited period beginning April 1, 2026.
  • This action is framed as an emergency amendment in response to congressional review and is designed to be in effect for a short duration (no longer than the act’s expiration or BID dissolution).

Key Provisions and Changes

Creation and Authority

  • Adds new Sec. 213 to the Business Improvement Districts Act of 1996.
  • Authorizes the formation of the Soul of the City BID and the imposition of BID taxes, contingent on Mayor’s review and approval under sections 6 and 7 of the Act.
  • Effective for the half tax year beginning April 1, 2026, through the earlier of:
    • expiration of the act, or
    • termination or dissolution of the BID.

Geographic Boundaries

  • Defines the Soul of the City BID boundary by a fixed list of properties (detailed lot and square descriptions). The boundary is fixed as of the act’s effective date (January 22, 2026) and will not be updated for future subdivisions or reconfigurations for the purposes of this act.

Tax Structure (BID Taxes)

Nonexempt properties within the Soul of the City BID are subject to the following BID taxes:
- Class 2 properties (excluding hotels): $0.18 per $100 of assessed value.
- Hotels and motels: $120 per room annually.
- Class 1A properties (residential units with 5 or more rental units, non-transient dwellings) placed in service after July 17, 1985: $120 per unit annually.
- Exemption: All other Class 1A or Class 1B properties are exempt from the BID tax.
- Exemption for affordable housing: If a residential unit is restricted to residents under an affordable housing program with income at 100% or less of area median income (as identified and certified by the BID), that unit is exempt from the BID tax.
- Ground lease consideration: If a building subject to the BID tax sits on land under a ground lease that is exempt from real property taxes, the combined value (building plus land interests) is taxed, and the lessee/user pays the BID tax.
- Safety-related investment exemption: If the property owner expends more than $250,000 in the prior tax year on safety-related activities that enhance public space or retail security, the owner’s property is exempt from the BID tax for the following taxable year, subject to BID certification and proof.
- Annual increase: A 3% annual increase in BID taxes over the current year’s rates is authorized, subject to the act’s provisions.

Administrative and Fiscal Details

  • The act adopts the Budget Director’s fiscal impact statement as required by the District’s General Legislative Procedures Act.
  • The act includes standard emergency-act timing: effective upon mayoral approval and temporary duration (no more than 90 days), with escalation as provided under the Home Rule Act for emergency measures.

Who and What Is Affected

  • Property Owners within the Soul of the City BID boundary (as defined by the fixed lot and square descriptions) will be subject to BID taxes unless exempt.
  • Specific property classes and exemptions include:
    • Class 2 commercial properties (non-hotel) taxed at $0.18 per $100 of assessed value.
    • Hotels/motels taxed at $120 per room annually.
    • Large residential rental properties (Class 1A) taxed at $120 per unit for units added after 1985, with exemptions for other Class 1A/1B properties.
    • Affordable housing units (income 100% of AMI or less) exempt if certified by the BID.
    • Properties benefiting from safety-related investments exemption ($250,000+ annually) exempt for the following year.
    • Ground-lease properties taxed on the combined value of building and land interests.
  • The Mayor’s approval is required for the BID’s formation and operation under this act.

Procedural and Timeline Aspects

  • Emergency nature: The act is designed to be temporary and contingent on congressional review, with a limited duration.
  • Effective date: The half-tax year starting April 1, 2026.
  • Term: The BID tax authority remains in effect for the shorter of the act’s expiration or the BID’s dissolution.
  • Mayor’s role: Formation and operation subject to review and approval by the Mayor under specified sections.
  • Oversight: Fiscal impact statement contributed by Budget Director; standard emergency-act provisions apply regarding duration (90 days) and potential override processes.

Notable Details

  • The boundary description is unusually detailed, listing numerous squares and lots; this specificity creates a fixed, non-updating boundary for the act’s duration.
  • The bill includes standard provisions for exemptions and potential increases, balancing equity (affordability exemptions) with property-tax-like funding for the BID.

If you’d like, I can provide a plain-language FAQ or a side-by-side comparison with the general District BID statutes to highlight material differences.

Compiled from official sources — confirm details with the bill’s official record.

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