Last November, the Office of Tax and Revenue (OTR) successfully completed phase two of its changeover to a new tax system which included Corporate and Unincorporated Franchise, Withholding, as well as the launch of its online portal, MyTax.DC.gov.
In November 2017, OTR will roll out the third phase of its changeover to a new system. In this migration, the following tax types will be brought over to MyTax.DC.gov from the current Electronic Taxpayer Service Center (eTSC):
Sales and Use Tax (includes bulk filings):
- FR-800A – Annual
- FR-800Q – Quarterly
- FR-800M – Monthly
Specialized Sales Tax:
- FR-800SM – Monthly
Sales and Use Tax Special Event:
Street Vendors and Mobile Food Services Minimum Sales Tax:
- FR-800V – Quarterly
Additional Changes to Sales and Use Tax Returns
The Sales and Use tax returns FR-800 (Monthly/Quarterly/Annual) will include a new column to report “Credit for Tax Refunded to Purchaser,” as well as a line to report “Exempt Sales.” These changes will create transparency and reduce errors on the returns.
Beginning in November 2017, organizations applying for an exemption from the District of Columbia Income and Franchise Tax, Sales and Use Tax and Personal Property Tax will be required to complete an online application and attach supporting documentation via 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.
Promoters will be required to register a qualifying special event and provide a preliminary vendor (50 or more) and exhibitor list through MyTax.DC.gov at least 30 days in advance of the event. Additionally, promoters will be required to provide a final vendor and exhibitor list within 10 days following the end of the event. Registration for special events will be accepted through a new online process only, beginning in November 2017. Promoters who fail to meet these obligations will be subject to a one time and daily penalty.
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.