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Union Station leaseholders pay $7.5M DC tax bill

- Associated Press - Friday, January 4, 2013

Union Station's leaseholders have agreed to pay the District $7.5 million in taxes dating to 2008 to settle a dispute over the amounts owed to the government.

Under the settlement Friday, Union Station Investco LLC and Union Station Redevelopment Corp. agreed to pay taxes for five years from 2008 to 2012.

The leaseholders contended for years that they weren't required to pay the district's "Possessory Interest Tax" because Union Station is owned by the federal government. A D.C. Superior Court judge ruled in April 2012 that they couldn't challenge the tax without first paying the amounts owed.

The agreement resulted in a dismissal of a lawsuit challenging the tax's validity.

In 2010, the D.C. Council considered waiving taxes to free up cash for improvements to the historic property.

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