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District of Columbia Code Division VIII. General Laws. § 47-2002. Imposition of tax.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A tax is imposed upon all vendors for the privilege of selling at retail certain tangible personal property and for the privilege of selling certain selected services (defined as “retail sale” and “sale at retail” in this chapter). The rate of such tax shall be 6.00% of the gross receipts from sales of or charges for such tangible personal property and services, except that:

(1) The rate of tax shall be 18% of the gross receipts from the sale of or charges for the service of parking or storing of motor vehicles or trailers, except the service of parking or storing of motor vehicles or trailers on a parking lot owned or operated by the Washington Metropolitan Area Transit Authority and located adjacent to a Washington Metropolitan Area Transit Authority passenger stop or station;

(2)(A) The rate of tax shall be 10.20% of the gross receipts from the sale of or charges for any room or rooms, lodgings, or accommodations furnished to a transient by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients;

(B) If the occupancy of a room or rooms, lodgings, or accommodations is reserved, booked, or otherwise arranged for by a room remarketer, the tax imposed by this paragraph shall be determined based on the net charges and additional charges received by the room remarketer.

(3) The rate of tax shall be 9% of the gross receipts from the sale of or charges for:

(A) Food or drink prepared for immediate consumption as defined in § 47-2001(g-1) or spirituous or malt liquors, beer, and wine sold by an alcoholic beverage licensee acting under authority of §§ 25-112(h)(1), 25-113(a)(3)(C), or 25-113.01(f) or (g);

(B) Spirituous or malt liquors, beers, and wine sold for consumption on the premises where sold.

(C) Repealed;

(3A) The rate of tax shall be 10.25% of the gross receipts of the sales of or charges for spirituous or malt liquors, beers, and wine sold for consumption off the premises where sold, unless sold by an alcoholic beverage licensee acting under authority of §§ 25-112(h)(1), 25-113(a)(3)(C), or 25-113.01(f) or (g);

(4) [Repealed];

(4A) The rate of tax shall be 6.00% of the gross receipts from the sale of or charges for tangible personal property or services by legitimate theaters, or by entertainment venues with 10,000 or more seats, excluding any such theaters or entertainment venues from which such taxes are applied to pay debt service on tax-exempt bonds;

(4B) The rate of tax shall be 9.25% of the gross receipts from the sale of or charges for rental or leasing of rental vehicles and utility trailers as defined in § 50-1505.01;

(5) Repealed.

(6) Repealed.

<Text of subsec. (a)(7) applicable until the date of inclusion of the fiscal effect of D.C. Law 24-332 in an approved budget and financial plan.>

(7)(A) The rate of tax shall be 6% of the gross receipts from the sale of or charges for medical marijuana, as defined in the Legalization of Marijuana for Medical Treatment Initiative of 1999, transmitted on December 21, 2009 (D.C. Act 13-138) [Chapter 16B of Title 7].

(B) The proceeds of the tax collected under subparagraph (A) of this paragraph shall be deposited in the Healthy DC and Health Care Expansion Fund established by [§ 31-3514.02]; except, that all revenue above the amount certified in the approved Fiscal Year 2023 budget for Fiscal Year 2023 shall be deposited in [§ 7-1671.08b].

<Text of subsec. (a)(7) applicable upon the date of inclusion of the fiscal effect of D.C. Law 24-332 in an approved budget and financial plan.>

(7)(A) The rate of tax shall be 6% of the gross receipts from the sale of or charges for medical cannabis, as defined in § 7-1671.01(12), except for sales or charges occurring during “4/20 Medical Cannabis Sales Tax Holiday Week”, which shall be the period of April 15 through April 24 each calendar year.

(B)(i) The proceeds of the tax collected under subparagraph (A) of this paragraph shall be deposited in the Healthy DC and Health Care Expansion Fund established by § 31-3514.02 through September 30, 2026; except, that all revenue above the amount certified in the approved Fiscal Year 2023 budget for Fiscal Years 2023, 2024, 2025, and 2026 shall be deposited in the Medical Cannabis Social Equity Fund established pursuant to § 7-1671.08b.

(ii) Beginning October 1, 2026, all proceeds of the tax collected under subparagraph (A) of this paragraph shall be deposited in the Medical Cannabis Social Equity Fund established pursuant to § 7-1671.08b.

(8) The rate of tax shall be 8% of the gross receipts from the sale of or charges for soft drinks.

(b) Of the sales tax revenue received pursuant to this section, $1,070,000 annually shall be used to fund the Reimbursable Detail Subsidy Program in the Alcoholic Beverage Regulation Administration.

(c) [Repealed].

(d)(1) For fiscal years ending before October 1, 2023, 5% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before the effective date of this subsection, shall be dedicated to the Arts and Humanities Fund, established by § 39-205.01, to support the functions, purposes, and costs of the Commission.

(2) For fiscal years beginning after September 30, 2023, and before October 1, 2027, there shall be dedicated to the Arts and Humanities Fund, from the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section, the lesser of:

(A) 5% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before October 30, 2018; or

(B) An amount equal to 102% of the amount dedicated to the Arts and Humanities Fund in the prior fiscal year pursuant to this subsection.

(3) For fiscal years beginning after September 30, 2027, 5% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before October 30, 2018, shall be dedicated to the Arts and Humanities Fund.

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Cite this article: FindLaw.com - District of Columbia Code Division VIII. General Laws. § 47-2002. Imposition of tax. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-viii-general-laws/dc-code-sect-47-2002/

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