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District of Columbia Sales Tax and Remote Vendors


District of Columbia Mayor Vincent C. Gray signed Act 19-381, “Fiscal Year 2013 Budget Request Act of 2012,” commonly called “Seizing Our Future” this week.

The Act will next be reviewed by Congress. If approved, this legislation “…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….”

For the purpose of this bill, a "'Remote-vendor' means a seller, whether or not it has a physical presence or other nexus in the District selling via the Internet property or rendering a service to a purchaser in the District."

The Act provides that the following will be made available:

  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 formula and procedure that permits a remote-vendor to deduct reasonable compensation for expenses incurred in the administration, collection, and remittance of remote sales tax ….”

There is an allowance for a “…small-vendor exemption.” An "'Exempted-vendor' means a remote-vendor that has a specified level of cumulative gross receipts from Internet sales to purchasers in the District that exempt it form the requirement to collect remote sales taxes."

To read more details, go to http://www.dccouncil.washington.dc.us/budget/2013, select FY13 Budget Request Act and scroll to Section 219 in the Act. “This section may be cited as the ‘District of Columbia Main Street Tax Fairness Act of 2012’.”

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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.”