DC Emergency Bill Increases Sales and Use Taxes

The District of Columbia sales and use tax rate will increase to 6% under emergency budget legislation. Other sales and use tax rates are also increased in the bill.

New Sales and Use Tax Rates

The District’s 2019 Budget Support Emergency Act of 2018 provides for increases to several sales and use taxes as of October 1, 2018.

The District sales and use tax rate will be 6%. Currently, the rate is 5.75%.

The lodgings tax will increase to 10.2% from 10.05%.

The sales and use tax rate on spirituous or malt liquors, beers, and wine sold for consumption off-premises will increase to 10.25% from 10%.

The tax on charges for theaters and major entertainment venues will increase to 6% from 5.75%.

Rentals and leases of vehicles and trailers will increase to 9.25% from 9%.

Act 22-434(D.C.B. 22-901), Laws 2018, effective July 30, 2018, for a 90-day period

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