District of Columbia Enacts New Lodgings Tax

Hotels in the District of Columbia must pay a new 0.3% transient lodgings tax as of October 1, 2017. The new tax is paid in addition to existing District taxes on hotels and other transient lodgings. Other sellers of short-term lodgings, as well as companies that buy room bookings and sell them to customers, called “room remarketers”, also must pay the tax.

Liability for the New Tax

As with current lodgings taxes, hotels and similar vendors pay the 0.3% tax on charges for short-term, or transient, stays. Other vendors that must pay the tax include:

  • inns;
  • tourist camps;
  • tourist cabins; and
  • any other place that provides short-term lodging.

In addition, the entire price a room remarketer charges a customer is subject to the tax.

Act 22-343 (D.C.B. 22-466), Laws 2017, approved May 7, 2018, effective after a 30-day congressional review period

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