Volume 1 - Executive Summary - Office of the Chief Financial Officer

Table 4-18
Summary of Major Taxes in the District of Columbia, Fiscal Year 2012
PART A — GENERAL FUND TAXES
FY 2011
REVENUE
TAX DESCRIPTION RATE ($ in thousands)
REAL PROPERTY TAX
All real property, unless expressly exempted, is subject to the real property
tax and is assessed at 100% of market value.
The District of Columbia has four property classes:
Class 1 – improved residential real property that is occupied and is used exclusively
for non-transient residential dwelling purposes
Class 2 – commercial property
Class 3 – vacant real property
Class 4 – blighted real property
DC Code Citation: Title 47, Chapters 7-10, 13, 13A
Class 1 = $0.85 per $100 of assessed value
Note: For Class 1 owner-occupied residential
real property, the first $67,500 of assessed
value is exempt from tax.
Class 2 = $1.65 per $100 for the first $3 million
of assessed value; $1.85 per $100 for assessed
value more than $3 million
Class 3 = $5.00 per $100 of assessed value
Class 4 = $10.00 per $100 of assessed value
$1,684,509
Amount is net of
$30,560 Tax Increment
Financing (TIF) transfer.
PERSONAL PROPERTY
TAX
Tax on all tangible property, except inventories, used or available for use in
a trade or business. Such property includes machinery, equipment, furniture,
and fixtures.
DC Code Citation: Title 47, Chapter 15.
$3.40 per $100 of assessed value
Note: The first $225,000 of taxable value is excluded
from tax.
Note: Prior to FY 2012 a portion was dedicated
to the Neighborhood Investment Fund
(NIF).
$49,604
Amount is net of
$3,092 NIF transfer.
SALES AND USE TAX
Tax on all tangible personal property and certain selected services sold or
rented to businesses or individuals at retail in the District.
Groceries, prescription and non-prescription drugs, and residential utility
services are among those items exempt from the sales tax.
The use tax is imposed at the same rate as the sales tax on purchases
made outside the District and then brought into the District to be used,
stored or consumed, providing that the purchaser has not paid the sales tax
on the purchases to another jurisdiction.
DC Code Citation: Title 47, Chapters 20 and 22.
Note: Tobacco products other than cigarettes means: (a) Any cigar or roll for
smoking, other than a cigarette or premium cigar, made in whole or in part
of tobacco; or (b) Any other tobacco or product made primarily from tobacco,
other than a cigarette, premium cigar, or pipe tobacco that is intended
for consumption by smoking, by chewing, or as snuff.
A four-tier rate structure is presently in effect:
6.0% – General rate for tangible personal
property and selected services
10% – Alcoholic beverages sold for off-thepremises
consumption
10% – Food or drink prepared for immediate
consumption, alcoholic beverages sold for
consumption on the premises, rental vehicles,
prepaid telephone calling cards, merchandise
sold at the baseball stadium, tickets sold for
events at the Verizon Center, and merchandise
sold at the Verizon Center.
14.5% – Hotels (transient accommodations)
18% – Parking motor vehicles in commercial
lots and tobacco products other than cigarettes
$830,805
Amount is net of transfers
to: the Convention
Center ($97,996), the
Tax Increment Financing
(TIF) Fund ($45,379),
DDOT ($31,209), the
Ballpark Revenue Fund
($9,512)
Note: The following portions of the sales tax
go to the Convention Center Fund: 1% from
restaurant meals and 4.45% from transient
accommodations.
Note: The 18% parking in commercial lots tax
is dedicated to WMATA
Note: Stadium-related sales tax revenue is
dedicated to the Ballpark Revenue Fund.
Revenue
4-42
FY 2013 Proposed Budget and Financial Plan