DISTRICT OF COLUMBIA – Sales Tax Changes Soft Drinks, Diapers and Qualified High Tech Companies Take Effect October 1, 2019

Sales and Use Taxes

  • Soft Drinks: The sale of or charge for soft drinks are subject to 8 percent sales and use tax. Sales or charges for soft drinks sold for immediate consumption will remain subject to a 10 percent sales tax. Further, the definition of “soft drink” is expanded to include beverages with natural or artificial sweeteners that contains less than 100 percent juice, less than 50 percent milk, soy, rice or similar milk substitutes or coffee substitutes, coffee, cocoa or tea. (See D.C. Official Code § 47-1803.02.)
  • Diapers: The sale of or charge for diapers is exempt from sales and use tax. “Diaper” is defined by statute as “an absorbent incontinence product that is washable or disposable and worn by a person, regardless of age or sex, who cannot control bladder or bowel movements.” (See D.C. Official Code § 47-2005(39).)
  • Qualified High Technology Companies (QHTC): Sales of certain property by QHTCs and sales to QHTCs of computer software, or hardware are NO LONGER exempt from sales and use tax. (See D.C. Official Code §§ 47-2001(n)(2)(G) and 47-2005(31).) All QHTC Exempt Purchases Certificates issued before October 1, 2019 are terminated as of that date.

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