Control Center Name

Recorder of
Deeds

J-90497

required technical adjustment to classify this item of expenditure postage in the correct object class.

Redirections Out (0 pos., 0 emp., -19.5)

Equipment & Equipment Rental - Redirection out (-2.0)
to provide additional funds for supplies & materials.

DISTRICT OF

COLUMBIA
GOVERNMENT

Control Center Name

01

J-90497

An increase of $40,000 is requested for the initial costs
of installing microfiche equipment. This machine will afford
the protection and efficient use of records in our Corporation
Records Division. This Division, which is a part of the
largest revenue producing section of this agency, has become
so overcrowded and congested that errors in the use of the
records are inevitable. These valuable corporation records
will form the basis for expensive suits when used in an
inefficient manner. Multi-million dollar corporations depend
upon our agency for accuracy and certification. One major
suit could cost the government much more than the modest
request we have made for the purpose of establishing the
initial phases of a microfiche system which will save space
and increase the efficiency and accuracy in the use of these
records.

BUDGET REQUEST

Mr. DIXON. Good morning.

You are Ms. Margurite Stokes, the Acting Recorder of Deeds. For the Office of the Recorder of Deeds, you are requesting $1,065,200 and 64 positions for fiscal year 1981, an increase of $40,000 above the fiscal year 1980 appropriation.

If you have a statement we would be glad to hear it.

RESPONSIBILITIES OF OFFICE

Ms. STOKES. Chairman Dixon and Subcommittee Members: The Office of the Recorder of Deeds for the District of Columbia records and files all documents relating to right, title, and interest in real and personal property. The recording and filing scope of this office includes corporations, partnerships, soldiers' discharge papers, Federal and District tax liens, judgments, foreclosures, mechanics' liens, hospital liens, materialmen's liens, and condominium liens. The office records all land transactions, deeds of trust and mortgages, and leases. Information is supplied daily, from both the alphabetical and lot and square indexes, to satisfy a wide public interest in important documents among its records.

FISCAL YEAR 1981 BUDGET REQUEST

The fiscal year 1981 appropriated budget request for operating programs is 64 positions and $1,065,200, an increase of $40,000 over fiscal year 1980. The increase will provide for initial installation of costs of microfiche equipment. This request will provide the minimum basic staff and funds to maintain the current level of services with some adjustments.

The agency is greatly in need of the manpower provided through the CETA Program which partially offsets understaffing in some divisions of this office. During the transition, and contemplated terminations of this program, every effort is being made in order that the program of the agency will not suffer.

REVENUE COLLECTIONS IN FISCAL YEAR 1981

It is estimated that approximately $14,000,000 in revenue will be collected through this office in fiscal year 1981. This revenue estimate includes real estate, corporation, and other recordation fees.

RECORDATION TAX

Mr. DIXON. You have for real estate a deed fee or tax which is 1 percent of the sales on real estate?

Ms. STOKES. Yes.

Mr. DIXON. What does that bring you in gross revenues a year? MS. STOKES. This year for the recordation tax, we had estimated a projected $13,485,000. We have since raised our estimate. We expect $14,645,549 just from the recordation tax. The raise was due to an increase in recordings during the traditionally slow period, the first quarter of the Fiscal Year.

Mr. DIXON. That is 1 percent of the sales price?
Ms. STOKES. Yes.

Mr. DIXON. The proposal, as I understand it, is to raise that to 2 percent.

Ms. STOKES. That is correct.

Mr. DIXON. Would you predict that would about double the revenue in, say, fiscal year 1981?

MS. STOKES. I don't think anybody is predicting a doubling. With the increase in the interest rates, there is going to be an expected slowdown anyway. If there is a slowdown, then the projections are going to be off. I think they are estimating from that additional increase in tax, a third increase over the rest of this fiscal year.

NUMBER OF REAL ESTATE DEEDS RECORDED IN FISCAL YEAR 1979

Mr. DIXON. Can you tell me roughly over a four-year or five-year period, how many real estate deeds are recorded a year?

Ms. STOKES. I have the figures for 1979.

Mr. DIXON. That would be fine.

MS. STOKES. For 1979 we had 13,855 deeds.

Mr. DIXON. For 1979?

Ms. STOKES. Yes. All of those deeds don't project tax revenues because there are transactions that are exempt.

AVERAGE SALES PRICE OF PROPERTY

Mr. DIXON. Can you tell me what the average sales price was in 1979 and 1980?

MS. STOKES. No.

The tax form has the amount of consideration that carries which is normally the sale price. There are transactions that are not sales.

Mr. DIXON. Are they exempt?

MS. STOKES. Where consideration passes, the tax is due but the deed does not reflect the sale price.

Normally, the consideration that is shown on the deed is $10, the legal consideration.

Mr. DIXON. But the fee is levied on the total sales price?

Ms. STOKES. On the tax form. Those are transmitted to the tax office on a daily basis. We don't keep the tax forms. For legal purposes we keep custody of their record, but the tax forms themselves are transmitted to the Finance and Revenue Office.

FEE PAID BEFORE RECORDATION

Mr. DIXON. That fee must be paid before there is a recordation? Ms. STOKES. Before we receive the deed, the tax must be paid. Mr. DIXON. I don't have any other questions.

Thank you very much.

THURSDAY, APRIL 3, 1980.

OFFICE OF THE SURVEYOR

WITNESSES

T. E. KOCH, ACTING SURVEYOR

DOROTHY BUSCH, ADMINISTRATIVE OFFICER