As a reminder, starting in November, there will be changes to the exemption application process with the District of Columbia Office of Tax Office and Revenue (OTR). For those organizations applying for an exemption from Individual Income and Franchise taxes, Sales and Use tax, and Personal Property tax will be required to complete an online application with supporting documentation via OTR’s online 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.
Additional Exemption Changes
Some exemption requests will require District taxpayers to sign up for a MyTax.DC.gov account which include:
- Exemption to File (FR-164)
- Utility Exemption (OTR-308)
- Contractor Exemption Purchase Certificate (OTR-553)
- Certificate of Resale (OTR-368)
- Special Certificate of Exemption (OTR-613)
The following exemption requests do not require a MyTax.DC.gov account registration:
- Exemption from Sales Tax on Parking (OTR-309)
- Government Exemption Certificate (FR-300)
The below chart highlights the exemptions, effective dates and periods, and documentation required per application.
|Exemption Type||Effective Date||Effective Period||Documentation Required with Application|
|Exemption to File (FR-164)||Date certificate issued by OTR||5 Years||IRS Determination Letter, Certificate of Incorporation or Authority, proof of occupancy, form 990T, 1120 POL|
|Utility Exemption Certificate (OTR-308)||Date certificate issued by OTR||5 Years||Predominant use study (Industrial Use), separate kitchen and building meters on utility bill(s) (Restaurant)|
|QHTC Exempt Purchase Certificate (FP-337)||Date certificate issued by OTR||1 Year||TBD – a single annual application process will cover the QHTC Exempt Purchase and QHTC Credit|
|Contractor’s Exempt Purchase Certificate (OTR-553)||Project start date||Project end date||TBD – will include proof of contract and period of performance|
|Certificate of Resale (OTR-368)||Date certificate issued by OTR||None||None|
|Special Certificate of Exemption (OTR-613)||Date certificate issued by OTR||5 Years||Legislation or a special ruling by the District Council|
|Government Exemption Certificate (FR-300)||Date certificate issued by OTR||5 Years||Proof of part of local government and reciprocity in the District of Columbia|
|Exemption from Sales Tax on Parking (OTR-309)||Date certificate issued by OTR||2 Years||Driver’s license, D.C. vehicle registration, proof of D.C. residence|
Stay tuned to the OTR blog for new updates and additional information.