Reminder: On October 29, Eight New Types Are Coming to MyTax.DC.gov

As a reminder, effective October 29, 2018, the Office of Tax and Revenue (OTR) will require District taxpayers to file and pay the following tax types electronically via its tax portal, MyTax.DC.gov

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

With the conversion of the new tax types to MyTax.DC.gov, 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.

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

The workshops will be held at various senior wellness centers across the city.

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.” 

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

The workshops are free and open to the public.

 

 

Workshop Schedule

 

Date Time Location
Wednesday, October 3 11:30am to 1:30pm Model Cities Senior Wellness Center

1901 Evarts Street, NE

Wednesday, October 10 11:30am to 1:30pm Hattie Holmes Senior Wellness Center

324 Kennedy Street, NW

Thursday, October 11 9:30am to 11:30am Bernice Fonteneau Senior Wellness Center

3531 Georgia Avenue, NW

 

Wednesday, October 17 9:30am to 11:30am University of the District of Columbia – Institute of Gerontology

4200 Connecticut Avenue, NW, Room A03

Tuesday, October 23 10am to 12 noon Hayes Senior Wellness Center

500 K Street, NE

Wednesday, October 24 10am to 12 noon Washington Seniors Wellness Center

3001 Alabama Avenue, SE

Tuesday, October 30 9:30am to 11:30am Congress Heights Senior Wellness Center

3500 Martin Luther King, Jr. Avenue, SE

 

For More Information

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

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

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 TaxesThe 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 ManagementExempt 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).

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

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.

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Reminder: 8 New Tax Types Are Coming to MyTax.DC.gov on October 29

Effective October 29, 2018, the District of Columbia Office of Tax and Revenue (OTR) will require individuals and businesses to file and pay the below tax types via its tax portal, MyTax.DC.gov:

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

Don’t delay, sign up for a MyTax.DC.gov account today.

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

Posted in MyTax.DC.gov | 1 Comment

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

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.

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New Restaurant Utility Exemption Sales Tax Filing Requirements

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
  • Electicity
  • Solid fuel, and/or
  • Steam

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.

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