Washington DC Council Passes Food Truck Sales Tax Bill

May 1, 2012 | Susan McLain

UPDATE: 5/11/2012 - the "Vendor Sales Tax Collection and Remittance Act of 2012" has been enrolled and will become effective October 1, 2012.

The Washington DC Council passed legislation “…that will require food trucks to pay the same 10 percent sales taxes assessed on normal restaurants.”

Food trucks currently pay a flat annual fee of $1,500 ($375 each quarter) in lieu of collecting sales tax. Restaurateurs have felt this is unfair. In March, 2011, a bill was introduced that gained traction this year. The bill would require food trucks and mobile vendors to collect and remit sales taxes on all customer purchases.

The bill comes at a time when “…new rules for food trucks floated by the D.C. Department of consumer and Regulatory Affairs as a means to quiet the conflicts that emerged between brick-and-mortar restaurants and food trucks.”

Food trucks who collect less than $375 in sales taxes every quarter will still be required to pay the minimum tax of $375. “According to the D.C. CFO, the city’s 1,200 food trucks and mobile vendors are expected to produce upwards of $1.2 million in tax revenue per year.”

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Susan McLain

Avalara Author Susan McLain

Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”