D.C. Increases Sales and Use Tax Rate

Under an emergency budget bill, the District of Columbia will increase its sales and use tax rate. The current sales and use tax rate in D.C. is 5.75%, effective October 1, 2018, the rate will be 6%. Other changes to tax rates in D.C., also effective October 1, 2018 include:

• 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%; and
• rentals and leases of vehicles and trailers will increase to 9.25% from 9%

These rate changes take effect as part of the Fiscal Year 2019 Budget Support Emergency Act of 2018, effective August 1, 2018, for a 90-day period that expires September 30, 2018. (Act 22-434 (D.C.B. 22-901), Council of the District of Columbia Laws 2018, effective August 1, 2018, for a 90-day period that expires Sept. 30, 2018).