Last month, the Chief Financial Officer of the Washington DC Office of Tax and Revenue gave a presentation on business taxes at the DC Economic Partnership’s Doing Business seminar. In it, he highlighted recent significant changes to the tax system.
The presentation begins with, “For each of the last 3 years, there have been significant tax changes as DC has tried to squeeze more money out of its tax system.”
Of particular note are the following:
Use Tax: The District of Columbia expanded business use tax filing requirements. The first such returns were due on October 22, 2012, for FY October 1, 2011 through September 30, 2012. There were implementation issues.
Electronic Filing: Effective October 1, 2012, business tax payments greater than $5,000 must be filed electronically. There is no other option. Prior to that date, only business tax payments greater than $10,000 were required to be filed electronically.
Expanded Sales Tax: Street vendors and food trucks must now collect sales tax and file quarterly; the rate is 10% for food and 6% for other tangible personal property. Street vendors and food trucks must remit either the amount of tax collected or $375, whichever is greater. Employers may “file on behalf of their vendors on a consolidated basis if done electronically.” The Vendor Sales Tax Collection and Remittance Act of 2012 took effect on October 1, 2012. The first returns were due January 20, 2013.
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