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Change To Washington DC Street Vendors Sales Tax


The District of Columbia is changing how street vendors and mobile food service vendors collect and remit sales tax. The "Vendor Sales Tax Collection and Remittance Act of 2012" takes effect October 1, 2012. The first returns and remittances are due January 20, 2013.

The original District of Columbia Official Code 47-2002.01 is entitled, "Payment in lieu of collecting and remitting sales tax to be made by street vendors." It states that "…every vendor who holds a license authorizing the vending of merchandise, food or services from public space or from door to door… shall make a $375 payment to the Mayor in lieu of collecting and remitting sales tax for the immediately preceding 3 months."

The Vendor Sales Tax Collection and Remittance Act of 2012 replaces the designation "Payment in lieu of collecting and remitting sales tax to be made by street vendors" and inserts in its place "Street vendors; minimum sales tax" or MST. "MST means the minimum sales tax that a street vendor is obligated to pay."

Snapshot

Effective for the quarter beginning October 1, 2012, street vendors who have collected less than $375 in sales tax for the quarter must "file a return pursuant to § 47-2002 ... and remit a $375 MST payment for the quarter being reported."

Any street vendor who has collected "sales tax in excess of $375" for the quarter must "remit the full amount of the sales tax collected for the quarter being reported."

According to a March, 2012, memorandum from Natwar M. Gandhi, Chief Financial Officer of the District of Columbia, the Vendor Sales Tax Collection and Remittance Act of 2012 "could increase net general fund revenue by approximately $3.45 million over the four-year financial plan period."

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.