District of Columbia Enacts Restaurant Utilities Exemption

District of Columbia Mayor Vincent C. Gray has signed the Fiscal Year 2014 Budget Support Emergency Act of 2013, enacting a restaurant utilities exemption. Effective August 1, 2013, sales of natural or artificial gas, oil, electricity, solid fuel or steam directly used in a restaurant are exempt from sales tax. For purposes of the exemption, a “restaurant” is a retail establishment that is licensed by the District, a separately metered or sub-metered facility, and in the principal business of preparing and serving food to the public. The term “restaurant” includes a pizzeria, delicatessen, ice cream parlor, cafeteria, take-out counter, and caterer, and banquet and food-processing areas in hotels but does not include beverage counters, including coffee shops and juice bars. (Act 20-130 (D.C.B. 20-337), Laws 2013)

Posted on August 26, 2013