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

SEC. 217. Section 103 of the District of Columbia Home Rule Act, approved December
24, 1973 (87 Stat. 777; D.C. Official Code § 1-201.03), is amended by adding a new paragraph
(16) to read as follows:
“(16) The term “Attorney General” means the Attorney General for the District of
Columbia provided for by part C-I of title IV.”.
SEC. 218. Section 602(a)(5) of the District of Columbia Home Rule Act, approved
December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(a)(5)), is amended by striking the
phrase “of any individual not a resident of the District” and inserting the phrase “of any individual
not a resident of the District, except professional athletes,” in its place.
SEC. 219. (a) Within 120 days of the effective date of this section, the District government
shall require every remote-vendor not qualifying as an exempted vendor to collect and remit to the
District remote sales taxes on sales made via the internet to a purchaser in the District of Columbia;
Provided, that the District government has established pursuant to local law:
(1) A registry, with privacy and confidentiality controls so that it cannot be used for
any purpose other than the administration of remote sales taxes, where each remote vendor, not
qualifying as an exempted vendor, shall be required to register;
(2) Appropriate protections for consumer privacy;
(3) A means for a remote-vendor to determine the current District sales and use tax
rate and taxability;
(4)(A) A formula and procedure that permits a remote-vendor to deduct reasonable
compensation for expenses incurred in the administration, collection, and remittance of remote
sales taxes, other than remote sales taxes paid by the remote-vendor for goods or services
purchased for its own consumption.
(B) The compensation authorized by subparagraph (A) of this paragraph
may be claimed by a third-party service provider that the remote-vendor has contracted with to
perform the responsibilities related to the administration, collection, and remittance of remote
sales taxes;
(5) The date that the collection of remote sales taxes shall commence;
(6) A small-vendor exemption, including a process for an exempted vendor to
apply for a certificate of exemption;
(7) Subject to subsection (c) of this section, the products and types of products that
shall be exempt from the remote sales taxes;
(8) Rules:
(A) For accounting for bad debts and rounding;
(B) That address refunds and credits for remote sales taxes relating to:
(i) Customer returns;
(ii) Restocking fees;
(iii) Discounts; and
(iv) Coupons;
(C) For allocating shipping and handling and discounts that apply to
multiple items;
(D) Regarding notice and procedural requirements for registry enrollment
by remote-vendors; and
(E) That the Mayor determines are necessary or appropriate to further the
purposes of this section; and
(9) A plan to substantially reduce the administrative burdens associated with sales
and use taxes, including remote sales taxes.
26