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OTR Customer Service Call Center Experiencing High Volume of Calls

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Tuesday, February 27, 2018

If you wish to contact the Office of Tax and Revenue by phone, please be aware that we are currently experiencing heavy call volumes. We apologize for any inconvenience caused.


DC Tax Office Mails 2019 Real Property Tax Assessments to Property Owners

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Thursday, March 1, 2018
The assessments indicate a steady DC real estate market

The District of Columbia Office of Tax and Revenue (OTR) announced today that it has begun to mail Tax Year 2019 assessment notices to all real property owners in the District of Columbia. A total of 200,443 taxable and exempt real properties have been reassessed to reflect current market values as of January 1, 2018. Property owners receiving new assessment notices will not be taxed on the new assessed value until March 2019.

The District’s real estate market remains steady as the proposed TY 2019 assessment average increase in residential properties (Class 1) was 3.33 percent. The commercial (Class 2) market also shows value increases of 3.29 percent.

The TY 2019 real property assessment notice contains the proposed assessed value for a property as well as the estimated taxable assessment and important information related to property tax relief programs such as the homestead benefit and senior citizen tax relief. In addition, included on the notice is the assigned appraiser’s contact information for taxpayers who wish to discuss their assessment.

District property owners who believe their proposed TY 2019 assessment does not reflect the market value of their property are encouraged to file an appeal on or before April 2, 2018. The appeal process begins when a property owner submits a First Level Appeal Application to OTR. This year, property owners can appeal their assessment online by visiting otr.cfo.dc.gov under the “Real Property” tab.

OTR Extends Income Tax Filing Deadline for Electronically Filed Returns to April 18 In Light of IRS System Outages

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Wednesday, April 18, 2018

Following system outages, the Internal Revenue Service is providing taxpayers an additional day (until April 18) to file their federal income tax returns. The Office of Tax and Revenue will also allow individuals and businesses until April 18 to submit their tax returns without penalty.

New DC Estate Tax Filing Requirements Effective May 2

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Friday, April 27, 2018

The Office of Tax and Revenue (OTR) has made changes to the estate tax filing process for representatives of decedents whose death occurred from January 1, 2016 and forward. Effective May 2, 2018, estate representatives responsible for filing an estate tax will be required to register for an account, file and submit payment via MyTax.DC.gov for the following Estate Tax returns:

  • D-76
  • D-76EZ
  • D-77

At MyTax.DC.gov the estate representative will be able to:
1. Attach applicable forms and schedules, such as:

  • Death Certificate
  • Letters of Administration
  • Other acceptable documents identifying the estate’s beneficiaries and/or executor(s) of the estate

2. Register for third party access, in which multiple parties can have access to the estate tax account.
3. View previously filed returns.
4. Make payment for any filing period.
5. Submit an amended return or file for an extension of time to file.

To learn more about this new filing requirement, view the estate tax brochure (PDF).

Personal Representatives Can Now File and Pay DC Estate Taxes Online at MyTax.DC.gov

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Wednesday, May 2, 2018

The District of Columbia Office of Tax and Revenue (OTR) announced today that personal representatives can now file and submit payment for DC estate taxes on the online portal, MyTax.DC.gov.

For personal representatives of decedents whose deaths occurred from January 1, 2016 and forward, they will be able to use MyTax.DC.gov as follows:

  • File and submit payments for the D-76, D-76EZ and D-77 Estate Tax Returns
  • Attach applicable forms and schedules, such as:
    • Death Certificate
    • Letters of Administration
    • Other acceptable documents identifying the estate's beneficiaries and/or executor(s) of the estate
  • Register for third party access, in which multiple parties can have access to the estate tax account
  • View previously filed returns
  • Make payment for any filing period
  • Submit an amended return or file for an extension of time to file

For additional information, visit MyTax.DC.gov, email OTR's e-Services Unit at e-services.otr@dc.gov or call (202) 759-1946. 

DC Office of Tax and Revenue to Hold Its 2018 Real Property Tax Sale Beginning Tuesday, July 17

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Wednesday, June 13, 2018

The District of Columbia Office of Tax and Revenue (OTR) announced today that it will hold its annual public Tax Sale beginning Tuesday, July 17, from 8:30 am until 12 noon and from 1 pm until 4 pm, or until all properties advertised are sold. The sale will be held at 1101 4th Street, SW, 2nd Floor, Room 250, Washington, DC 20024.

A list of more than 1400 properties by parcel, square, suffix, and lot number, with the name of the owner of record and the unpaid tax amount can be viewed at OTR’s website, as well as today’s TheWashington Informer, TheWashington Times and TheCurrent newspapers.

Public Seminars:

OTR will conduct four public seminars to explain the Tax Sale procedures to prospective bidders. The seminars will be conducted at 1101 4th Street, SW, 2nd Floor, Room W250, Washington, DC 20024, on the following dates:

  • June 26: 9:30 am to 12 noon and 2 pm to 4:30 pm
  • June 27: 9:30 am to 12 noon and 2 pm to 4:30 pm

To register for a seminar, please visit the Customer Service Administration’s Walk-In Center, located at 1101 4th Street, SW, 2nd Floor, Room W270, Washington, DC 20024.

Registration:

Registration for the Sale is mandatory and begins Monday, July 9, and continues until the final day of the sale. To register, prospective bidders must make a deposit of at least 20 percent of their total bids. A $200 Tax Sale fee will be added to each property at the time of the sale. Purchasers are also required to complete Form FR-500, Combined Business Tax Registration Application, prior to registering.

For more information on the Tax Sale process, call (202) 727-4TAX (4829) or visit OTR’s Customer Service Center at 1101 4th Street, SW, Room W270.

View the 2018 Tax Sale Listing and 2018 Tax Sale FAQs.

Effective October 29, 8 New Tax Types Will Be Available at MyTax.DC.gov

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Tuesday, June 19, 2018

Last November, the Office of Tax and Revenue (OTR) successfully completed phase three of converting Sales and Use, Specialized Sales, Special Event, and Street Vendors and Mobile Food Services Minimum Sales tax types over to MyTax.DC.gov.

On October 29, OTR will roll out the fourth phase of converting eight new tax types to MyTax.DC.gov as follows:

  • Alcoholic Beverage
  • Ballpark Fee
  • Cigarettes
  • Department of Health Care Finance
  • Gross Receipts
  • Motor Vehicle Fuel
  • Other Tobacco
  • Personal Property Tax

With the conversion of these tax types, District taxpayers will continue to see an improvement of self-service options and transparency.

Stay tuned to the OTR blog for new updates and additional information.

Beginning August 6 District Assessors Will Conduct Residential Real Property Inspections in Mt Pleasant Neighborhoods

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Tuesday, July 31, 2018
Inspections of commercial real property will also be conducted along the H Street, NE corridor.

The Office of Tax and Revenue (OTR) announced today that its assessors will begin to conduct residential real property inspections in the Mount Pleasant neighborhood, as well as commercial inspections along the H Street, NE corridor beginning August 6. This is part of a periodic assessment in which interior/exterior inspections are made of every neighborhood in the District.

“We are always working to improve the accuracy of our assessment process,” said Deputy Chief Financial Officer Keith J. Richardson. “These inspections allow us to validate our assessment data and maintain an equitable property tax system for the District.”

When inspecting a property, an assessor is required to present credentials that identify him/her as a representative of OTR. The credentials consist of an identification passbook, which includes the signature of the deputy CFO, and a numbered badge. If citizens wish to confirm the assessor’s identity, they should call OTR’s Real Property Assessment division at (202) 442-6760. Residents can refuse entry and not allow appraisers inside their homes. If a resident refuses entry the value of the interior will be estimated by the appraiser.

If the property owner is not available at the time of the inspection, the assessor will only inspect the exterior property. An interior inspection will be conducted only when an adult is present and the inspector is given permission to enter the home. If the property owner is not available at the time of inspection, the assessor will leave a note with contact information should the property owner have any questions.


Business Taxpayers Must Log in to MyTax.DC.gov to Pay With eCheck

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Friday, August 17, 2018

The Office of Tax and Revenue (OTR) advises business taxpayers that they must now log in to their MyTax.DC.gov account to pay their tax liabilities by eCheck.

Business taxpayers may still submit payments by credit/debit card without logging in to MyTax.DC.gov. A convenience fee of 2.5 percent will be charged by the credit card processor for each payment. OTR highly recommends signing up for a MyTax.DC.gov account to unlock the full range of services offered by the portal.

For additional information, visit MyTax.DC.gov, email OTR’s e-Services Unit at e-services.otr@dc.gov or call (202) 759-1946.

District of Columbia Tax Rates Changes Take Effect Monday, October 1

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Wednesday, September 5, 2018

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) reminds tax professionals, software providers, businesses, and others about tax rate changes that will take effect on Monday, October 1, 2018. The changes will apply as required by the Fiscal Year 2019 Budget Support Emergency Act of 2018 for the following tax types:   

Sales and Use Taxes

General sales: The general sales and use tax rate will increase from 5.75 percent to 6 percent. 

Off-premises alcohol: The rate for sales or charges from the sale of malt liquors, beers, and wine sold for consumption off the premises will increase from 10 percent to 10.25 percent. 

Rental of vehicles and utility trailers:  The total rate of tax for sales or charges from the rental or leasing of rental vehicles and utility trailers will increase from 10 percent to 10.25 percent.

Legitimate theaters and entertainment venues:  The total rate of tax for the sale of or charges for any tickets to legitimate theaters and entertainment venues will increase from 5.75 percent to 6 percent. 

Baseball stadium-related sales:  The total rate of tax for the sale of or charges for any tickets to baseball games or baseball-related events at Nationals Park and for baseball-related tangible personal property sold at Nationals Park will increase from 10 percent to 10.25 percent. 

Capital One Arena sales: The total rate of tax for the sale of or charges for any tickets sales to events at the Capital One Arena or for event-related tangible personal property sold at Capital One Arena will increase from 10 percent to 10.25 percent.

Feminine hygiene products: The sale of feminine hygiene products is exempt from sales and use taxes.

Note: The total rates for sales or charges for food or drink prepared for immediate consumption (10 percent) and for the service of parking or storing vehicles (18 percent) remain unchanged. 

Hotel/Transient Accommodations

The total rate of tax on gross receipts for the sale of or charges for any rooms, lodging or accommodations will increase from 14.8 percent to 14.95 percent. 

Note: For bookings that were made and fully pre-paid before October 1, the 14.8 percent rate will still apply.  The new rate of 14.95 percent applies to bookings made after October 1, that were not fully pre-paid for all room charges and applicable tax.   

Tobacco Taxes

Cigarette Taxes: The total tax levy for cigarettes will increase from $2.94 to $4.94 per pack of 20.

Other Tobacco Taxes: The tax rate on other tobacco products, which include vapor products, will increase from 60 percent to 96 percent of wholesale sales.

Estate Taxes

Filing requirement:  A District Estate Tax Return (Form D-76 or Form D-76EZ) must be filed for a decedent whose death occurs on or after January 1, 2018, if the decedent’s gross estate is $5,600,000 or more.

Zero bracket amount:  The zero bracket amount (i.e., amount exempt from District estate tax) is increased to $5,600,000 for a decedent whose death occur on or after January 1, 2018.

Real Property Taxes

The Senior/Disabled Assessment Cap Credit: The senior/disabled assessment cap credit generally provides that a real property may not be taxed on more than a 5 percent increase in the property’s taxable assessment each year. This credit does not reduce the assessed value of the property on the tax roll or the assessment notice, but it will appear as an automatic credit on the property owner’s real property tax bill.  The property must be receiving the homestead deduction and Senior or Disabled Owner Real Property Tax Relief for this credit to be applied.


Class 2 Commercial:  The real property tax rates and special real property tax rates for taxable Class 2 Properties are:

  • $1.65 for each $100 of assessed value if the real property’s assessed value is not greater than $5 million;
  • $1.77 for each $100 of assessed value if the real property’s assessed value is greater than $5,000,000 but not greater than $10 million; or
  • $1.89 for each $100 of assessed value if the real property’s assessed value is greater than $10 million.

Stormwater Management: Exempt property will not become taxable if any part is used to generate storm water retention credits certified in accordance with 21 DCMR § 531.

Motor Fuel Taxes

License Fee: The annual importer license fee is eliminated.  (Effective November 1, 2019)

For additional information, visit MyTax.DC.gov or call OTR’s Customer Service Center at  (202) 727-4TAX (4829).
 

In October OTR Will Host a Series of Workshops to Educate DC Seniors About Real Property Tax Relief Programs

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Thursday, September 13, 2018

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) announced today that it will host a series of workshops in October to educate senior residents about real property tax relief programs that are available to reduce their tax liability. The workshops, which are supported by the Office on Aging, will take place at various senior wellness centers across the city.

"District of Columbia property owners who are senior citizens may be eligible for significant real property tax relief that would reduce their taxes," said Deputy Chief Financial Officer Keith J. Richardson. "At the Office of Tax and Revenue we are committed to ensuring that senior homeowners, many on fixed incomes, take advantage of the tax relief programs available to them."

Workshops Schedule

DateTimeLocation
Wednesday, October 311:30 am to 1:30 pmModel Cities Senior Wellness Center
1901 Evarts Street, NE
Wednesday, October 1011:30 am to 1:30 pmHattie Holmes Senior Wellness Center
324 Kennedy Street, NW
Thursday, October 119:30 am to 11:30 am

Bernice Fonteneau Senior Wellness Center
3531 Georgia Avenue, NW

Wednesday, October 179:30 am to 11:30 am   University of the District of Columbia – Institute of Gerontology
4200 Connecticut Avenue, NW, Room A03
Tuesday, October 2310 am to noon   Hayes Senior Wellness Center
500 K Street, NE
Wednesday, October 2410 am to noon Washington Seniors Wellness Center
3001 Alabama Avenue, SE
Tuesday, October 309:30 am to 11:30 am  Congress Heights Senior Wellness Center
3500 Martin Luther King, Jr. Avenue, SE

Seniors can receive assistance with:

  • Senior Assessment Cap
  • Homestead Deduction
  • Homeowner/Renter Property Tax Income Tax Credit (Schedule H)
  • Lower Income, Long-Term Homeowners Income Tax Credit
  • Property Tax Deferral
  • Low-Income Senior Homeowners
  • Senior or Disabled Owner Tax Relief

For additional information, please contact OTR’s Customer Service Center at (202) 727-4TAX (4829).

Attachment(s): 

MyTax.DC.gov Will be Unavailable 5:30 pm October 26 through 7:00 am October 29 for Scheduled Maintenance

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Tuesday, October 2, 2018

As part of our commitment to improve services provided to District taxpayers, the Office of Tax and Revenue (OTR) will perform scheduled maintenance to the MyTax.DC.gov online portal from 5:30 pm Friday, October 26 through 7:00 am Monday, October 29. During this time, MyTax.DC.gov will not be available.

After 7:00 am Monday, October 29, taxpayers will regain access to the portal with new filing and payment options for the following tax types:

  • Alcoholic Beverage
  • Ballpark Fee
  • Cigarettes
  • Department of Healthcare Finance
  • Gross Receipts
  • Motor Vehicle Fuel
  • Other Tobacco
  • Personal Property Tax

Taxpayers who use the Electronic Taxpayer Service Center (eTSC) to file and pay some of these tax types will no longer be able to access eTSC moving forward.

During the scheduled maintenance period, tax returns and payments can be mailed to:

Office of Tax and Revenue

Returns Processing Administration

1101 4th Street, SW, 4th Floor

Washington, DC 20024

 

For additional information, contact OTR’s e-Services Unit, via email, at  e-Services.otr@dc.gov.

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Register for OTR's 2019 Tax Practitioners Institute

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Wednesday, October 17, 2018

The Office of Tax and Revenue (OTR) will hold its annual workshop for tax practitioners on Thursday, January 10, 2019, from 8:30 am to 4:30 pm, at 1101 4th Street, SW, Suite 250, Washington, DC 20024.

The one-day workshop will focus on what’s new for the upcoming filing season, OTR’s tax portal that allows individual and business taxpayers to be more self-sufficient online, and updates on a number of tax law and form changes.

The seminar is free, but preregistration is required. Register here.

DC Office of Tax and Revenue Successfully Completes Changeover to a New Tax System

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Monday, October 29, 2018

The District of Columbia Office of Tax and Revenue (OTR) announced today that it has successfully implemented the fourth and final phase of its changeover to a new agency-wide computer system. The new Modernized Integrated Tax System (MITS)/Gentax replaces the legacy system and supports all of the essential functions of tax administration and compliance.

With the completion of this final phase, the following taxes and fees can now be filed and paid using the online portal, MyTax.DC.gov:

  • Alcoholic Beverage
  • Ballpark Fee
  • Cigarettes
  • Department of Healthcare Finance
  • Gross Receipts
  • Motor Vehicle Fuel
  • Other Tobacco
  • Personal Property

“The changeover to the MITS/GenTax system gives taxpayers and tax professionals more tools and improved online access,” said Keith J. Richardson, deputy chief financial officer for the Office of Tax and Revenue. “This multi-phase project enhances OTR’s efforts to increase transparency, reduce processing time, improve correspondence and enhance fraud detection measures.”
 
Before the overall computer conversion project began, the more than 20 tax types and fees administered by OTR were housed in an outdated legacy computer system and other related databases. That antiquated system is now retired.

Over the last four years, income, withholding, corporate and unincorporated franchise, sales and use, estate, specialized sales and street vendor/mobile food services taxes were integrated into the new system. The implementation also included the online tax portal, MyTax.DC.gov, which provides a new level of taxpayer self-service for filing, payment and business registration. With the online tax portal, taxpayers can complete many of the services without traveling to OTR. Taxpayers can file and pay their taxes online, request refunds, set up standard payment plans, file required documentation electronically, and review information they have filed.
 
“Many thanks to all OTR employees for their team work on this important project,” said Eva Liggins, director of operations for the Office of Tax and Revenue. “We also appreciate the work performed by FAST Enterprises, our technology partner in this venture. The collaboration and hard work of our two teams have resulted in a system that has truly enhanced our service capabilities and the effectiveness of our compliance initiatives.”
 
For additional information, visit MyTax.DC.gov, email OTR’s e-Services Unit at e-Services.otr@dc.gov or call (202) 759-1946.

DC Seniors Real Property Tax Workshops-New Date Added; Tuesday, November 13

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Tuesday, November 6, 2018

The Office of Tax and Revenue (OTR) announced today that it has added another date to its real property tax relief workshops, Tuesday, November 13. The workshops are being held to educate senior residents about real property tax relief programs available to reduce their tax liability. The new workshop will be held from 10 am to noon at the John A. Wilson Building, 1350 Pennsylvania Avenue, NW, Room 104.

Seniors can receive assistance with:

  • Senior Assessment Cap
  • Homestead Deduction
  • Homeowner/Renter Property Tax Income Tax Credit (Schedule H)
  • Lower Income, Long-Term Homeowners Income Tax Credit
  • Property Tax Deferral
  • Low-Income Senior Homeowners
  • Senior or Disabled Owner Tax Relief

For additional information, please contact OTR’s Customer Service Center at (202) 727-4TAX (4829).

Attachment(s): 

Taxation of Digital Goods in the District of Columbia

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Thursday, January 3, 2019

The District of Columbia Council has passed legislation amending the sales and use tax treatment of digital goods sold or used in the District. See Internet Sales Tax Emergency Amendment Act of 2018, approved on December 31, 2018 (D.C. Bill 22-1070). 
 
Under D.C. Code § 47-2002(a), a sales tax is imposed upon all vendors for the privilege of making a “retail sale” or “sale at retail” of tangible personal property and certain selected services.  Under D.C. Code § 47-2202(a), a use tax is imposed on the use, storage, or consumption of any tangible personal property and service sold or purchased at retail.   
 
As of January 1, 2019, D.C. Code §§ 47-2001(n)(1)(BB) and 47-2201(a)(1)(R)  now include the sale of or charges for digital goods in the definition of “retail sale” and “sale at retail”.  For purposes of the sales and use tax, D.C. Code § 47-2001(d-1) defines the term “digital goods” to mean digital audiovisual works, digital audio works, digital books, digital codes, digital applications and games, and any other otherwise taxable tangible personal property electronically or digitally delivered, whether electronically or digitally delivered, streamed or accessed and whether purchased singly, by subscription or in any other manner, including maintenance, updates and support.  

  • Digital audiovisual works: a series of related images that, when shown in succession, impart an impression of motion, together with accompanying sounds. “Digital audiovisual works” includes motion pictures, musical, videos, news and entertainment programs, and live events.   
  • Digital audio works: works that result from the fixation of a series of musical, spoken, or other sounds, that are transferred electronically, including prerecorded or live songs, music, readings of books or other written materials, speeches, ringtones, or other sound recording. 
  • Digital books: works that are generally recognized in the ordinary and usual sense as books that are transferred electronically, including works of fiction, nonfiction, and short stories.  
  • Digital code: a code that provides the person who holds the code a right to obtain an additional digital good and that may be obtained by any means, including tangible forms and electronic mail, regardless of whether the code is designated as song code, video code, or book code. “Digital code” includes codes used to access or obtain any specified digital goods, or any additional digital goods that have been previously purchased, and promotion cards or codes that are purchased by a retailer or other business entity or use by the retailer’s or entity’s customers.  
  • Digital applications and games: any application or game, including add-ons or additional content that can be used by a computer, mobile device, or tablet notwithstanding the function performed. 

Additionally, beginning January 1, 2019, D.C. Code § 47-2501.01(a), the video gross receipts tax, has been amended to exclude sales of services taxable as digital goods.  As a result, as of January 1, 2019, sales of streaming video services will be subject to the sales tax, and no longer subject to the gross receipts tax under D.C. Code § 47-2501.01(a). 
 
Below is a chart delineating the sales taxability of a variety of digital goods as of January 1, 2019: 

Digital Good
Subject to Sales Tax?
Rationale
Applications
Yes
These sales are taxable digital goods.  D.C. Code § 47-2001(d-1). 
Software – Canned 
Yes
These sales are taxable as data processing services.  D.C. Mun. Regs. §9-474.4. 
Software – Prepackaged
Yes
These sales are taxable as data processing services.  D.C. Mun. Regs. §9-474.4.
Software – Customized 
Yes
These sales are taxable as data processing services.  D.C. Mun. Regs. §9-474.4.
Digital News and Digital Periodicals
Yes
These sales are taxable as “the furnishing of general or specialized news or current information” and as “news clipping service” under D.C. Code §47-2001(n)(1)(N)(ii). 
Digital Books
Yes
These sales are taxable digital goods.  D.C. Code § 47-2001(d-1). 
Digital Audio Books
Yes
These sales are taxable digital goods.  D.C. Code § 47-2001(d-1). 
Digital Music Downloads and Streaming
Yes
These sales are taxable digital goods.  D.C. Code § 47-2001(d-1). 
Digital Video Downloads
Yes
These sales are taxable digital goods.  D.C. Code § 47-2001(d-1). 
Streaming Video Services
Yes
These sales are taxable digital goods.  D.C. Code § 47-2001(d-1). 

Please note that the new legislation did not affect the taxation of software in the District.  Under D.C. Mun. Regs. 9 §474.4, the sale, rental, or maintenance of computer software continues to be subject to sales tax in the District whether the software is canned, prepackaged, or customized. Taxable computer software and software services include system software, application software, computer programming, software modification, or software updating. The new legislation does not affect D.C. Mun. Regs. 9 §474.4. 

This Notice supersedes prior OTR Notice 2017-06.   

Questions should be directed to the Office of the General Counsel at (202) 442-6500.  

Click here to read South Dakota v. Wayfair, Inc. 

OTR to Begin Processing Electronic and Paper Returns for Tax Year 2018 on January 28

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Thursday, January 24, 2019

The Office of Tax and Revenue (OTR) announced today that it is following the lead of the Internal Revenue Service (IRS) and opening the District of Columbia’s tax filing season on Monday, January 28.

As the filing season begins, OTR reminds taxpayers and tax professionals of the following tax changes that will take effect for the tax filing season:

  • Individual Income Tax Filing Deadline: The deadline to file income tax returns for tax year 2018 is Monday, April 15, 2019.
  • Standard Deduction: Beginning with tax year 2018, the District standard deduction conforms to the federal standard deduction and includes both a basic standard deduction and, if applicable, additional standard deductions for taxpayers and spouses or registered domestic partners who are blind and/or age 65 and older in the amount of $1,300 ($1,600 if single or head of household). Pursuant to the federal tax reform that was passed by Congress in 2017, the basic standard deduction for tax year 2018 is as follows:
    • Single: $12,000
    • Head of Household: $18,000
    • Married/Registered Domestic Partners Filing Jointly: $24,000
    • Married/Registered Domestic Partners Filing Separately: $12,000
    • Dependents:  See D-40 Worksheet for Dependent Filers
    • If born before January 2, 1954, or blind, an additional standard deduction of $1,300 ($1,600 if single or head of household) is allowed, by using Schedule S, Calculation G-1.  When married filing separately, taxpayers may take an additional standard deduction for their spouse/registered domestic partner only if their spouse/registered domestic partner had no gross income, is not filing a return, and cannot be claimed as a dependent by another taxpayer.
  • Personal Exemptions: Beginning with tax year 2018, the District personal exemption conforms to the federal personal exemption. The amount of both the federal and District personal exemption is zero. (The District personal exemption for fiduciaries is zero for estates and $100 for trusts.)
  • Low Income Tax Credit: The District low income tax credit was repealed for tax years beginning with 2018.
  • Itemized Deductions: The District generally allows the same itemized deductions allowed under the Internal Revenue Code for federal individual or fiduciary income tax returns.  Pursuant to the federal tax reform that was passed by Congress in 2017, many itemized deductions previously allowed under the Internal Revenue Code have been eliminated or modified beginning with tax year 2018.  Accordingly, many of the itemized deductions previously allowed for District taxpayers are now eliminated or modified.
  • State and Local Tax Deduction: Pursuant to the federal tax reform that was passed by Congress in 2017, the itemized deduction allowed under federal law for the payment of state and local taxes is limited to $10,000 per year for single and married filing jointly taxpayers and $5,000 per year for married filing separately taxpayers. The District does not allow a deduction for income taxes but allows a deduction for property taxes. The District will continue to allow a deduction for property taxes paid and will not limit that deduction to $10,000. For more information, see Calculations D (pg. 26) and F (pg. 28).
  • Schedule H: The Homeowner and Renter Property Tax Credit amounts for tax year 2018 are:
    • Property tax credit remains $1,025
    • Schedule H federal AGI eligibility threshold for under age 70 increases from $50,500 to $51,000
    • Schedule H federal AGI eligibility threshold for age 70 and older increases from $61,900 to $62,600
  • Early Learning Tax Credit:  For tax year 2018 only, eligible taxpayers may claim a refundable income tax credit up to $1,000 per eligible child. For more information on the Early Learning Tax Credit (ELTC), please visit https://otr.cfo.dc.gov/page/early-learning-tax-credit-frequently-asked-questions-faqs.
  • Franchise Tax Rate: The tax rate for corporations and unincorporated businesses for tax year 2018 is 8.25 percent.
  • Small Retailer Property Tax Relief Credit: Certain qualified corporations and unincorporated businesses engaged in making sales at retail may claim a refundable franchise tax credit up to $5,000 based on the amount of real property taxes or rent they pay for a qualified retail location in the District. For more information on the Small Retailer Property Tax Relief Credit, please visit https://otr.cfo.dc.gov/page/small-retailer-property-tax-relief-credit-frequently-asked-questions-faqs.
  • Contact OTR's Customer Service: OTR welcomes questions, comments and suggestions. If you have specific questions about your tax account, please log in to MyTax.DC.gov and send us a web message. You may also contact us as follows:
    • Email:e-services.otr@dc.gov
    • Main Customer Service: (202) 727-4TAX (4829); e-Services: (202) 759-1946;
    • Address: 1101 4th Street, SW, Suite 270, Washington, DC 20024
    • Hours of Operation: Monday to Friday, 8:15 am to 5:30 pm, except holidays
    • Newsletter: Subscribe today - https://mytaxdc.wordpress.com
    • Twitter: @DC_OTR

Important Information Regarding the District of Columbia Withholding

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Thursday, February 21, 2019

This year, like many other states and jurisdictions, the Office of Tax and Revenue (OTR) has delayed issuing a new withholding table due to the impact of the Tax Cuts and Jobs Act (TCJA). As the tax reform bill suspends personal exemptions and many itemized deductions, we can no longer include them in the development of the withholding table. In the interim, taxpayers should use the 2018 FR-230 tables until the IRS issues the withholding guidance.

OTR Launches Facebook Account in its Continuing Efforts to Educate Taxpayers on the Latest Tax Law Changes, News and Updates

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Thursday, February 21, 2019

As part of a larger mission of assisting taxpayers in meeting their tax responsibilities, the District of Columbia Office of Tax and Revenue (OTR) announced today its debut on Facebook, adding this platform to its social media portfolio.

OTR’s Facebook account,http://facebook.com/OTRDC/ will provide DC taxpayers with up-to-date information on tax law changes, numerous tax relief programs, services, and initiatives.

“The addition of Facebook is another platform for OTR to share information more widely and reach additional taxpayers and tax professionals,” said Deputy Chief Financial Officer Keith J. Richardson.

Research shows that 82 percent of U.S. young adults between 18 and 24 and 79 percent of adults between 30 and 49 are active on Facebook. OTR plans to use Facebook to better serve this segment of the population, sharing content on individual income, business and real property taxes.

Other social media platforms offering official OTR information include:

Twitter: @DC_OTR

Blog: https://mytaxdc.wordpress.com/

OTR reminds taxpayers that securing their personal and tax information is vital. When submitting a comment, personal and tax information should NOT be provided.

District of Columbia Tax Assessments Indicate a Steady Real Estate Market

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Wednesday, February 27, 2019

The Office of Tax and Revenue (OTR) announced today that it has begun to mail Tax Year (TY) 2020 assessment notices to all real property owners in the District of Columbia. More than 200,000 taxable and exempt real properties have been reassessed to reflect current market values as of January 1, 2019. This is NOT a tax bill. Property owners receiving new assessment notices will not be taxed on the new assessed value until March 2020.

The District’s real estate market remains steady as the proposed TY 2020 assessment average increase in single-family residential properties (Class 1) was 4.23 percent. The commercial (Class 2) market also shows value increases of 2.42 percent.

The TY 2020 real property assessment notice contains the proposed assessed value for a property as well as the estimated taxable assessment and important information related to property tax relief programs such as the homestead benefit and senior citizen tax relief. In addition, included on the notice is the assigned appraiser’s contact information for taxpayers who wish to discuss their assessment.

District property owners who believe their proposed TY 2020 assessment does not reflect the market value of their property are encouraged to file an appeal on or before April 1, 2019. The appeal process begins when a property owner submits a First Level Appeal Application to OTR. Property owners can appeal their assessment online by visiting otr.cfo.dc.gov under the “Real Property” tab.

Property owners can access the following documents:

2020 Base Change Commercial (Class 2)

2020 Single Family Overall Change Residential (Class 1)

2020 Residential Change Map by DC Ward

2020 Commercial Change Map by DC Ward

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