DC Increases Sales and Use Tax Rates

The District of Columbia sales and use tax rate increases to 6% under emergency legislation. The legislation also increases sales and use tax rates for:

– hotel rooms;

– liquor beer and wine;

– entertainment venues, and

– car and truck rentals.

The increases will apply as of October 1, 2018.

Rates on Hotel Rooms, Alcohol, Entertainment, and Vehicle Rentals Increase

As part of emergency legislation for funding the arts, the D.C. Council has passed increases to several sales and use tax rates.

– The general rates increase to 6% from 5.75%.

– The rates on hotel rooms and other transient lodgings increase to 10.20% from 10.05%.

– The rate on liquor beer and wine increases to 10.25% from 10%.

– The rate on sales by entertainment venues with 10,000 or more seats increases to 6% from 5.75%.

– The car and truck rental tax rate increases to 9.25% from 9%.

The legislation also makes increases to property tax rates.

Act 22-458 (D.C.B. 22-922), Laws 2018, effective October 3, 2018, for a 30-day period that expires December 31, 2018

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup