District of Columbia Issues Emergency Act Clarifying Sales Tax Exemption on Restaurant Utilities

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)

Posted on April 19, 2011