District of Columbia – Restaurant Utilities Exemption

SALT Report 2841 – The District of Columbia has amended its sales and use tax exemption for sales of utilities to restaurants. The exemption now applies to sales of separately metered or sub-metered natural or artificial gas, oil, electricity, solid fuel, or steam used directly in a restaurant, effective August 1, 2013.

For purposes of the exemption, a “restaurant” is a retail establishment that is licensed by the District of Columbia and is in the business of preparing and serving food to the public.

The term restaurant includes a pizzeria, delicatessen, ice cream parlor, cafeteria, take-out counter, caterer, and banquet or food-processing areas located in hotels.  However, the term does not include beverage counters, such as coffee shops and juice bars.

To claim the exemption, all restaurants must file and submit Form OTR-308B to the Department.  You will need to complete a form for each utility meter and restaurant location requesting the exemption.

For Further Information

Government of the District of Columbia – Restaurant Utility Exemption

Restaurant Utility Exemption Application and Certificate