§ 47-2202 — Imposition of tax.

District of Columbia § 47-2202

• Jurisdiction: District of Columbia
• Title 47: Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]
• Ch. 22: Compensating-Use Tax.

Text

(a) There is hereby imposed and there shall be paid by every vendor engaging in business in the District and by every purchaser a tax on the use, storage, or consumption of any tangible personal property and service sold or purchased at retail sale. The rate of tax imposed by this section on the sales price of such tangible personal property and services shall be 6.0% before October 1, 2026, and 7.0% beginning on October 1, 2026, and continuing thereafter; except, that:

(1) The rate of tax shall be 12% of the gross receipt 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;

(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) ; and

(B) Spirituous or malt liquors, beer 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(C) [Repealed].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) ;

(3B) 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 ; and

(3C) 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.

(4) [Repealed].

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

(6) The rate of tax shall be 7.5% on the gross receipts from the sale of or charges collected to play commercial bingo.

(A) The rate of tax shall be 6% of the gross receipts from the sale of or charges for medical cannabis, as that term is defined in § 7-1671.01(12) .

(B) In Fiscal Year 2026, 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 proceeds of such tax above the amount certified for Fiscal Year 2026 in the approved Fiscal Year 2023 budget shall be deposited in the General Fund of the District of Columbia.

(1) For fiscal years beginning before October 1, 2023, 5% of the use tax revenue collected at the rate provided by the lead-in language of subsection (a) 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, established by § 39-205.01 .

(2) For fiscal years beginning after September 30, 2023, 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 following amounts:

(A) In Fiscal Year 2024 and Fiscal Year 2025, the lesser of:

(i) 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

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

(B) In Fiscal Year 2026, the lesser of:

(i) 4.615% 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

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

(C) In Fiscal Year 2027 and each subsequent fiscal year, the lesser of:

(i) 4.286% 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

(ii) 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) [Repealed].

Legislative History

May 27, 1949, 63 Stat. 126, ch. 146, title II, § 212; May 18, 1954, 68 Stat. 118, ch. 218, title XIII, § 1307; Mar. 2, 1962, 76 Stat. 10, Pub. L. 87-408, § 102; Aug. 2, 1968, 82 Stat. 615, Pub. L. 90-450, title III, § 307; Oct. 31, 1969, 83 Stat. 172, Pub. L. 91-106, title I, § 110; Jan. 5, 1971, 84 Stat. 1932, Pub. L. 91-650, title II, § 201(c)(2); Aug. 29, 1972, 86 Stat. 643, Pub. L. 92-410, title III, § 301(b); Oct. 21, 1975, D.C. Law 1-23, title III, § 302(2), 22 DCR 2101; June 15, 1976, D.C. Law 1-70, title IV, § 409, 23 DCR 544; Sept. 13, 1980, D.C. Law 3-92, § 202, 27 DCR 3390; Sept. 26, 1984, D.C. Law 5-113, § 201(e), (f), 31 DCR 3974; July 25, 1989, D.C. Law 8-17, § 5(b), 36 DCR 4160; Sept. 30, 1993, D.C. Law 10-25, § 112(d), 40 DCR 5489; Apr. 30, 1994, D.C. Law 10-115, § 204(b), 41 DCR 1216; June 14, 1994, D.C. Law 10-128, § 105(b), 41 DCR 2096; Sept. 28, 1994, D.C. Law 10-188, § 303(a), 41 DCR 5333; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 12, 1998, D.C. Law 12-142, § 3(f), 45 DCR 4826; June 5, 2003, D.C. Law 14-307, § 902(b), 49 DCR 11664; Mar. 3, 2010, D.C. Law 18-111, § 7241(g), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-364, § 2(d), 58 DCR 976; Sept. 14, 2011, D.C. Law 19-21, § 7002(b)(1), 58 DCR 6226; Dec. 24, 2013, D.C. Law 20-61, § 7155, 60 DCR 12472