Real Property Exemption Status, World Bank

FYD- agugaa Covernment of the District of Columbia OFFICE OF THE CORPORATION COUNSEL DISTRICT BUILDING WASHINGTON, D. C. 20004 OF COLIFITIES IN REPLY REFER TO: OCC/CDD/FS/JER/o 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 1/ authorizes the President, by appropriate Executive Order, to designate 1/ 22 U.S.C. §288 (1979). - 2 - international organizations meeting certain definitional criteria 2/ to enjoy the privileges, exemptions and immunities provided for in the Act. 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. 3/ 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. 4/ Timing of Exemption By regulation, the Department has exempted certain properties from the requirement of a written application for a property tax exemption. 5/ 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. 2/ 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. 3/ 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 * * * 4/ 22 U.S.C. §288c (1979). 5/ 9 D.C.M.R. $322.3: The following properties are exempt from the requirement [Footnote 5 cont'd on the next page] - 3 - Conclusion Accordingly, it is clear that the World Bank is an international organization falling with 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, Inexired Inez Smith Reid Corporation Counsel, D.C. [Footnote 5 cont'd. from previous page] for a written application for property tax exemption: * * * (5) Property specifically exempt by Act of Congress.