District of Columbia – Budget Request Act 2012

SALT Report 1588 – District of Columbia Mayor Vincent Gray recently signed and approved the Fiscal Year 2013 Budget Request Act of 2012 which includes the following sales and use tax provisions:
Sales in Federally Owned Buildings
Section 204 – Sales in federal buildings and by federal enterprises or organizations shall be subject to the sales and use taxes of the District of Columbia. Taxable sales include sales at gift shops, souvenir shops, kiosks, convenience stores, food shops, cafeterias, restaurants, and other establishments in federal buildings that are made to:
  • The general public, whether the establishment is operated by the federal government, an agent of the federal government, or a contractor; and
  • Other than the general public, if operated by an agent of the federal government or a contractor
Taxable sales also includes sales of goods and services by government-sponsored enterprises and corporations, institutions, and organizations established by federal statute or regulation, including, but not limited to, the Smithsonian Institution, National Gallery of Art, National Building Museum, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation.
Remote-Seller Collections
Within 120 days of the effective date of the Act, the District will require every remote vendor that does not qualify as an exempt vendor to collect and remit sales tax on all remote sales made through the Internet to buyers in the District. Additionally, every non-exempt remote vendor will be required to register with the District. However, the following local laws must be established before the District can require collection:
  • 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 will register
  • Appropriate protections for consumer privacy
  • A means for a remote vendor to determine the current District sales and use tax rate and taxability
  • 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 taxes
  • The date that the collection of remote sales taxes will commence
  • A small vendor exemption which includes a process for an exempted vendor to apply for a certificate of exemption
  • The products and types of products that shall be exempt from the remote sales taxes, and
  • A plan to reduce the administrative burdens associated with sales and use taxes, including remote sales taxes
Furthermore, nothing in these provisions neither permits nor prohibits the District from:
  • Licensing or regulating a person
  • Requiring a person to qualify to transact remote selling
  • Subjecting a person to District taxes not related to the sale of goods or services, or
  • Exercising authority over matters of interstate commerce
For Further Information:

District of Columbia – Budget Support Act Act 19-0381