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The District of Columbia has enacted the Fiscal Year 2013 Budget Support Act of 2012, which amends online hotel sales tax provisions.  Beginning October 1, 2012, under the online hotel tax provisions, "net charges" means the sale or charge receipts for any room or rooms, lodgings, or accommodations furnished to transients, received from a room remarketer by the operator of a hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration.  Prior to October 1, 2012, "net charges" means the gross receipts from the sale of or charges for any room or accommodations received from a room remarketer by the operator of a hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration. The act amends, effective October 1, 2012, the term "additional charges" to mean the excess of the sale or charge receipts received by a room remarketer over the net charges. Prior to October 1, 2012, "additional charges" means the excess of the gross receipts from the sale of or charges for any room or accommodations received by a room remarketer over the net charges. Under the act, a "room remarketer" will be deemed a vendor with respect to additional charges and will file returns and remit tax due on those charges. Prior to October 1, 2012, a room remarketer is a vendor with respect to additional charges. (Act 19-385 (D.C.B. 19-743), Laws 2012, approved June 22, 2012, effective after a 30-day congressional review period)

(11/26/2012)

The District of Columbia has enacted the Fiscal Year 2013 Budget Support Act of 2012, which creates new requirements for employer use tax returns.  Beginning with the 12 month period ending on September 30, 2012, any employer that is required to file a withholding tax return but is not required to collect and remit sales tax must file an annual use tax return. The return must be filed on or before October 20 of each year, and any use tax due must be remitted at the same time as the return.  The chief financial officer can permit or require such returns to be made for other periods and filed on other dates, but the gross receipts for any tax year must be included in the returns covering that year. (Act 19-385 (D.C.B. 19-743), Laws 2012, approved June 22, 2012, effective after a 30-day congressional review period)

(11/26/2012)

The District of Columbia has enacted emergency legislation amending Act 18-0645, known as the “Processing Sales Tax Clarification Act of 2010.” That act, approved December 28, 2010, clarified the application of the sales tax exemption for utilities used for processing and refrigeration in restaurants. Under the legislation, sales of oil, solid fuel, steam and electricity are exempt. The new emergency act, known as the “Processing Sales Tax Clarification Emergency Amendment Act of 2011,” clarifies the application of the sales tax exemption. The amendment states that the Act will still apply as of January 1, 2010, provided that its fiscal effect is included in an approved budget and financial plan. The exemption is still available even though the emergency act has expired. (Act 19-0011 (D.C.B. 19-0063), Laws 2011, effective February 11, 2011, for a 90-day period that expires May 19, 2011)

(04/19/2011)

The District of Columbia has enacted the Fiscal Year 2011 Budget Support Act of 2010. The Act imposes the 6% sales taxes on medical marijuana and soft drinks, eliminates supermarkets, qualified restaurants, and retail stores from the exemption for qualified developments and imposes an E911 2% surcharge on the purchase of retail telecommunications services for any purpose other than resale. The surcharge is the liability of the customer but collected by the seller. The surcharge must be separately stated and is excluded from the tax base for sales tax calculation. Minimal amounts for service (less than 10 minutes or $5) are excluded from tax. (Act 18-042 (D.C.B. 18-0731), Laws 2010, approved October 1, 2010, effective after a 30-day congressional review period; Act 18-0858), Laws 2010, effective July 2, 2010, for a 90-day period that expires September 30, 2010). (9/10)

(09/13/2010)

The District of Columbia has enacted a tax amnesty period taking place from August 2, 2010 to September 30, 2010. The program will apply to individuals and businesses with unpaid D.C. tax obligations due before December 31, 2009. All penalties and fees will be waived if the taxpayer pays all outstanding tax and interest during the amnesty period. The types of tax eligible for amnesty are sales and use, individual income, corporate and unincorporated franchise, withholding, personal property, fiduciary income, motor fuel, special event, gross receipts, estate, tobacco, and toll communication taxes. Real property taxes and the ball park fee are not covered by the amnesty program. Individuals with tax obligations who do not participate in the program may see increased withholdings from their paychecks. The District has authorized the Office of Tax and Revenue to have employers increase withholding tax collections from those individuals. In addition, business owners who have underreported their sales revenue are advised to file amended returns. Beginning in 2011, credit card companies will report sales revenue to the IRS who will pass the information along to the Office of Tax and Revenue. This will enable them to identify businesses who have underreported for 2011 and prior years and select them for audit. (Release, District of Columbia Office of Tax and Revenue, July 29, 2010). (9/10)

(09/13/2010)

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