The District of Columbia low-income housing tax credit (“D.C. LIHTC”) was established under D.C. Code § 47-4801 et seq., (the “Act”). The credit is available for “qualified projects” located in the District. D.C. Code § 47-4802. This notice will address the transfer requirements set forth in D.C. Code § 47-4803.

A “qualified project” means “a rental housing development in the District” that, after October 1, 2021, “receives an allocation of federal low-income housing tax credits under IRC § 42(h)(1) or (4)” or a commitment to “extend low-income housing... pursuant to IRC § 42(h)(6)(B) between the owner... and the Department executed on or after October 1, 2021.” D.C. Code § 47-4801(8).

For the purposes of D.C. Code § 47-4801(8) the term “Department” is the “Department of Housing and Community Development, or its successor agency.” D.C. Code § 47-4801(2).

View the complete notice below.

The Office of Tax and Revenue (OTR) reminds District of Columbia taxpayers that the 1st half Real Property Tax payments are due Friday, March 31. Payments by check or money order may be mailed to the District in the envelope enclosed with the first half bill sent to each taxpayer or to the address shown on the bill.

Taxpayers who need to pay their Real Property Tax bill with cash must bring the bill and payment to 1101 4th Street, SW, 1st Floor, the District of Columbia’s main cashier office, which is open weekdays from 8:15 am until 4:30 pm.

Beginning Tuesday, March 7, from noon–12:30 pm, the Office of Tax and Revenue’s staff will host a series of interactive discussions on topics such as the DC Earned Income Tax Credit (EITC), the clean hands process and much more.

Each Tuesday, participants will learn more about the following topics:

• March 7 - DC Earned Income Tax Credit  
• March 14 - OTR’s New Taxpayer Advocate
• March 21 - Clean Hands Certification Process
• March 28 - COOP Community Opportunities/Tax Requirements

The live stream will begin promptly at noon on OTR’s official Instagram page, @MyTaxDC.

We look forward to your participation.

Initiative 82, passed by District voters in November 2022, eliminated the tipped minimum wage for servers, bartenders and other tipped workers which was $5.35. (See, Initiative Measure No. 82 - District of Columbia Tip Credit Elimination Act of 2021, D.C. Law 24-0281).  To reach the DC minimum wage, currently $16.10, the minimum wage difference was made up with gratuities, whether voluntarily given by consumers or required to be paid by consumers. This gratuity is otherwise known as the “tip credit.”  Beginning on May 1, 2023, employers are required to supplement workers’ pay if the worker did not earn enough in tips to reach the DC minimum wage. The tipped minimum wage will be phased out by 2027 to be replaced with one universal minimum wage.

OTR will conduct two online seminars, via WebEx, to explain the Tax Sale procedures to prospective bidders.

Although registration for the seminars is not mandatory, all persons interested in participating in the Annual Tax Sale are encouraged to attend the Tax Sale seminars to learn critical information relating to the Tax Sale process. During the seminar, the July Tax Sale dates and times will be announced.

The seminars for the 2023 Tax Sale will be conducted as follows:

• Wednesday, June 28: 9:30 am to 12 pm and from 1:30 pm to 4 pm
• Thursday, June 29: 9:30 am to 12 pm and from 1:30 pm to 4 pm

The registration period for the Tax Sale seminars is open from June 19 through June 26. Instructions for registering for a seminar are as follows:

1. Go to MyTax.DC.gov
2. Real Property
3. View More Options
4. Tax Sale Registration
5. Register for a Tax Sale Seminar.

Note: A Webex invitation link will be sent to the email you have provided at the time of registration a day prior to the scheduled event. Please also note: A person with a communication impairment requiring interpreter must submit their request via MyTax.DC.gov no later than June 21 for the June 28 session and June 22 for the June 29 session.

The District of Columbia Office of Tax and Revenue (OTR) reminds taxpayers, tax professionals, software providers, businesses and others about tax changes that will take effect October 1, 2023.   These changes are pursuant to the Fiscal Year 2024 Budget Support Emergency Amendment Act of 2023 (and the Fiscal Year 2024 Budget Support Amendment Act of 2023), previously enacted legislation applicable on October 1, 2023, or other annual changes required by District law.   The following changes will take effect October 1, 2023, unless otherwise indicated:

Sales and Use Tax:

• Tourism Recovery Tax Amendment Act of 2023: The sales and use tax rate on the gross receipts from the sale of or charges for any room or rooms, lodgings, or accommodations furnished to a transient by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished in the District is increased during the periods from April 1, 2023, through March 30, 2027. The total sales and use tax rates imposed on such gross receipts are increased from 14.95 percent to 15.95 percent.   (This change was previously enacted on an emergency and temporary basis in the Tourism Recovery Tax Emergency Amendment Act of 2022 and Tourism Recovery Tax Temporary Amendment Act of 2022.)

• Subject to Appropriations Repeals and Modifications Amendment Act of 2023: The Street Vendor Advancement Amendment Act of 2023, in part, establishes an amnesty program for any person applying with the Department of Licensing and Consumer Protection (DCLP) to be a street vendor for certain liabilities owed the District including any minimum sales tax imposed under D.C. Code § 47- 2002.01 and any interest or penalty due thereon.  Taxpayers may participate in the amnesty program by filing an application with DCLP along with documentation verifying the amount of delinquent minimum sales tax owed to OTR.  DCLP will then certify to OTR whether the taxpayer is eligible for such an abatement and the amount to be abated.

• Alcoholic Beverage and Cannabis Administration Dedicated Tax Adjustment Act of 2023: Sales tax revenue dedicated to the Reimbursable Detail Subsidy Program is limited to $1,070,000.

• Dedicated Revenue Adjustments Amendment Act of 2023: The dedication of sales and use tax revenue to the Arts and Humanities Fund for fiscal years 2024-2027 is limited to either the lesser of 5% of undedicated sales tax revenue or 102% of the amount allocated to the Arts and Humanities Fund in the prior fiscal year. For fiscal year 2028, 5% of undedicated sales tax revenue is allocated to the Arts and Humanities Fund.

• The revenue from sales tax collected on services for parking or storing vehicles or trailers dedicated to paying the District's annual operating subsidies to WMATA is capped for fiscal years 2024-2027 at 102% of the revenue dedicated for the prior fiscal year.

Sports Wagering Tax:

• Dedicated Revenue Adjustments Amendment Act of 2023: The dedication to the Early Childhood Development Fund of revenue collected pursuant to the tax on sports wagering is repealed. 

Real Property Tax:

• Performing Arts Promotion Tax Rebate Clarification Amendment Act of 2022: Applications for this real property tax rebate must now be filed with the Office of Cable Television, Film, Music and Entertainment (OCTFME).  (OTR does not accept these applications.) 

• Tax Abatements For Affordable Housing in High-Need Areas Amendment Act of 2023: The law increases the real property tax abatement amount available beginning October 1, 2024 from $4MM to $5MM for tax year 2025, and subject to annual cost-of- living increases thereafter.

• Housing in Downtown Abatement Amendment Act of 2023: The law significantly increases the amount of abatement available beginning October 1, 2027 to $41MM, and thereafter for tax year 2028, and subject to annual cost-of- living increases thereafter.  Also, the law institutes an 18% moderate income or 10% low-income affordability requirement for unit affordability.

• Creative and Open Space Modernization Amendment Act of 2023:  The law changes the requirements to qualify for the real property or possessory interest tax rebate based on specified income-earning activities, including education and research, consulting services, communications and design, hospitality, tourism and entertainment, life sciences and health technology, and technology.

Commercial Recordation and Transfer Taxes:

• The Recordation and Transfer Taxes Amendment Act of 2019:  This law sunsets on September 30, 2023.  Thus, beginning October 1, 2023, commercial recordation and transfer tax rates will return to 1.45% of consideration, for each of such taxes.

Tax on Cigarettes and Other Tobacco Products:

• Increase in the Surtax on Cigarette Packages:  The surtax on a package of cigarettes of $0.53 per pack of cigarettes is in addition to the cigarette excise tax of $4.50 per pack. Thus, the total tax levy for cigarettes in the District of Columbia will be $5.03 per pack of 20.

• Increase in the Tax Rate on Other Tobacco Products:  The tax rate applicable to other tobacco products is 79 percent.

Motor Fuel Tax:

• Increase in Local Transportation Surcharge on Motor Vehicle Fuels :  The local transportation surcharge per gallon on local transportation surcharge is increased to $0.114 per gallon.  Thus, the total tax (including the local surcharge) on motor fuel is $0.349 per gallon.

Individual Income Tax:

• Expansion of DC Earned Income Tax Credit (DC EITC) to ITIN Filers :  Beginning January 1, 2023 an individual who is a resident of the District but is not a citizen or resident alien of the United States, who would otherwise be allowed a federal earned income credit but for possessing a social security number, may claim the DC EITC by filing a DC return with an individual taxpayer identification number issued by the IRS to the individual, individual’s spouse, or any qualified child claimed on the return.   
• DC EITC Monthly Payments :  Fortax year 2023, if the amount of the DC earned income tax credit is $1200 or more, the entire amount of the credit allowed shall be paid to the individual in 12 equal monthly payments. If the amount of the DC EITC is less than $1200, the entire amount of the credit allowed shall be paid to the individual in one lump sum payment.

The Office of Tax and Revenue (OTR) will hold its annual "Tax Practitioner's Institute" on Thursday, January 11, 2024, from 9 am to 3 pm EST. It will take place online using the Teams platform. The seminar is free, but registration is required. Please register here.

At the seminar, OTR will provide tax preparers with a comprehensive presentation, with several speakers and an advance look at what’s new for the tax-filing season and for the new tax year.

Registration:

The week of January 8, registered preparers will receive an email, which will include a link to use to join the seminar.

Do you have questions that you would like addressed during the seminar?

Email those questions in advance, using the following email address: communicationsotr@dc.gov.

During the seminar, the presenters will answer as many of those questions as possible. (Please do not include any client-specific information.)

(Washington, DC) – Today, Mayor Muriel Bowser and the Department of Insurance, Securities and Banking (DISB) encouraged residents to explore available credits, incentives, and resources ahead of the 2024 tax season that can put money back in their pockets. Tax season begins Monday, January 29, and ends Monday, April 15.

Resources available to Washingtonians include the Earned Income Tax Credit (EITC), DC’s Keep Child Care Affordable Tax Credit, the Senior Citizen/Disabled Property Tax Relief program, and free tax preparation services offered through DISB. 

“When tax season comes, it helps to know which credits and programs you qualify for to maximize your returns,” said Mayor Bowser. “That’s why we’re spreading the word about the tax credits, incentives, and programs available to Washingtonians. If your income is in a certain range, if you pay for child care, if you own property, you could qualify for money back on your taxes. And if you need help filing, there are tax clinics available to make sure you file your returns correctly and on time.”

Resources available to help Washingtonians make the most of their tax returns include:

Federal Earned Income Tax Credit (Federal EITC) 

• The Federal Earned Income Tax Credit (Federal EITC) provides money back for people who work and who have a low or moderate income.
• Individuals and families who qualify generally make less than $17,640 and $63,398, respectively. 
• Through the federal EITC, residents can get back anywhere between $560 to $7,000, on their taxes.
• To learn more visit: irs.gov/eitc. 

 
DC’s Earned Income Tax Credit (DC EITC)

• The District Earned Income Tax Credit (DC EITC) is a refundable credit for low- and moderate-income workers, separate from the federal EITC. 
• The DC EITC gives individuals and families 70% of their Federal EITC amount for tax year 2023, one of the highest match rates in the country. 
• To learn more visit: disb.dc.gov/eitc.

District of Columbia Keep Child Care Affordable Tax Credit

• In 2019, Mayor Bowser created the Keep Child Care Affordable Tax Credit to make child care more affordable for District families. 
• The credit is available to taxpayers based on the amount of eligible child care expenses paid by the taxpayer per eligible child. 
• Last year, the amount of the Keep Child Care Affordable Tax Credit was a maximum of $1,045 per eligible child. 
• To learn more visit: MyTax.dc.gov.

Disabled or Senior Citizen Property Tax Relief

• The Senior Citizen Tax Relief Program applies to those property owners who occupy their property as their principal place of residence, are 65 years of age or older, and meet certain income requirements. 
• When a property owner turns 65 years of age or older, or when he or she is disabled, they may file an application immediately for disabled or senior citizen property tax relief. 
• This benefit reduces a qualified property owner's property tax by 50%.
• To learn more visit: MyTax.dc.gov.

DC Free Tax Preparation Locations and Financial Assistance 

• Free tax clinics are open to all residents. 
• To find a tax clinic near you, visit disb.dc.gov/freetaxprepresources.
• The AARP is partnering with DC to support seniors, which includes free tax assistance.
• To learn more, visit: taxaide.aarpfoundation.org/.

“The tax clinics in the District are an important way for residents to learn about and utilize the many tax resources we have to offer,” said DISB Commissioner Karima Woods. “These clinics are not only free, but they are also conveniently located. Don’t leave money on the table this season; I urge every taxpayer in the District to check the clinics out.”

The deadline to file taxes is April 15, 2024.
 

Mayor Bowser X: @MayorBowser
Mayor Bowser Instagram: @Mayor_Bowser
Mayor Bowser Facebook: facebook.com/MayorMurielBowser
Mayor Bowser YouTube: https://www.bit.ly/eomvideos

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) will begin to accept and process Tax Year 2023 individual income tax returns today, January 29, consistent with the start of the federal tax filing season.

As District taxpayers gather their documents and prepare for the filing season, OTR reminds them of several key changes that went into effect on October 1, 2023.

What’s New:

Tax Rate Schedule:

For tax year 2023, the DC income tax rate schedule is as follows:

Standard Deduction:

The standard deduction has increased for Tax Year 2023 as follows:

• From $12,950 to $13,850 for single and married/registered domestic partner filers filing separately.
• From $19,400 to $20,800 for head of household filers.
• From $25,900 to $27,700 for married/registered partners filing jointly and qualifying widow(er) with dependent child(ren) filers.
• If born before January 2, 1958, or blind, an additional standard deduction of $1,500; ($1,850 if single or head of household).

District Earned Income Tax Credit (EITC):

• For this tax year, the DC EITC gives individuals and families 70% of their Federal EITC amount for tax year 2023, one of the highest match rates in the country. If your DC EITC is $1,200 or more your DC EITC will be paid in 12 equal monthly payments, pursuant to District law.
• For EITC Without Qualifying Children, the maximum credit amount has increased from $560 to $600.
• Beginning in tax year 2023, the EITC will be available to filers using an ITIN if they are otherwise eligible for the credit.
• For more information on the DC EITC, please visit: EITC.DC.gov.

Schedule H - Homeowner and Renter Property Tax Credit:

• The maximum property tax credit limit has increased from $1,250 to $1,325.
• Schedule H federal Adjusted Gross Income (AGI) eligibility threshold for under age 70 increased from $57,600 to $61,300.
• Schedule H federal AGI eligibility threshold for age 70 and older increased from $78,600 to $83,700.

Unemployment Insurance:

For taxable years beginning January 1, 2021, unemployment insurance benefits provided by the federal government, District of Columbia, and any other state, are excluded from the computation of District gross income.

Tax Filing at MyTax.DC.gov:

Taxpayers can file both their 2023 D-30 and D-40 forms and schedules as well as the standalone Schedule H tax return, at no cost, via the MyTax.DC.gov portal.

Filing Deadline:

The filing deadline to submit Tax Year 2023 individual income tax returns or an extension to file and pay tax owed is Monday, April 15, 2024.

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

On April 2, 2024, the Council of the District of Columbia passed the Medical Cannabis Patient Card Extension and 4/20 Medical Cannabis Sales Tax Holiday Week Emergency Amendment Act of 2024. To amend, on an emergency basis, the Legalization of Marijuana for Medical Treatment Initiative of 1999 set a new expiration date for qualifying patient and caregiver registration identification cards from 2 years to 6 years, which requires the surrender of a registration card and notification of any registered caregiver when a person no longer requires medical cannabis. This legislation also amends Title 47 of the District of Columbia Official Code to establish the 4/20 Medical Cannabis Sales Tax Holiday Week for 2024.

Accordingly, the rate of tax is 6% of the gross receipts from the sale of or charges for medical cannabis, as defined in D.C. Code § 7-1671.01 (12), except for sales or charges occurring during the period of April 15, 2024 through April 28, 2024, which is established as the 4/20 Medical Cannabis Sales Tax Holiday Week for year 2024.

All medical marijuana dispensaries who are registered for a sales and use tax account with the Office of Tax and Revenue should file an FR-800-SM, Specialized Sales Tax as usual through MyTax.DC.gov on or before May 20 and should continue to report their total gross sales.

Any exempt sales made during the 4/20 Medical Cannabis Sales Tax Holiday Week for 2024 should be reported on Line 18, Column B (“Less Exempt/Resale Sales”) and subtracted from gross sales to determine a taxpayer’s taxable sales.

For additional information, please contact OTR’s Customer Service Center at e-services.otr@dc.gov or (202) 759-1946.