The District of Columbia Office of Tax and Revenue (OTR) would like to remind restaurants of the changes to the utility sales tax exemption application process.
In the District of Columbia, restaurants are entitled to a sales tax exemption for purchases of the following utilities used directly in the restaurant:
- Natural or artificial gas, oil
- Solid fuel, and/or
To qualify for the sales tax exemption, the restaurant’s kitchen must have its own sub-meter or separate utility meter. Additionally, restaurants applying for the sales tax exemptions for utilities are required to complete an online application and attach supporting documentation via OTR’s tax portal, MyTax.DC.gov. If the exemption is approved, OTR will issue an official certificate which will include an expiration date. Taxpayers must reapply for a new exemption prior to the expiration date on the certificate.
For more information download an electronic copy of the District of Columbia Restaurant Utility Tax Exemption brochure by clicking the image below.