District of Columbia – Tax Exemption Applications

SALT Report 1234 – The District of Columbia Office of Tax and Revenue has issued guidance regarding the proper procedures for filing an application for tax exemption.  A nonprofit organization that means to conduct business within the District of Columbia must first submit an application for exemption from franchise, sales and use, or personal property taxes.

Under District law, exempt status can only be granted by the Office of Tax and Revenue. District statutes provide that an organization cannot claim exemptions from taxes unless the organization obtains a certificate from OTR stating that it is entitled to an exemption.

The notice addresses the following topics:

  • The application procedures
  • The requirements for obtaining, completing, and filing Form FR-164 – the District exemption application
  • The effective dates of the various exemption requests; and
  • The penalties that apply to organizations that do not file an exemption application