The enrolled version of the District of Columbia Fiscal Year 2012 Budget Support Act of 2011 (B19-0203), released July 8, 2011, does the following:
- mandates the use of water’s edge combined reporting by corporations engaged in a unitary business operation;
- requires the use of a three-factor apportionment formula that includes a double weighted sales factor;
- establishes a two-tier minimum tax structure;
- imposes income tax on non-District municipal obligations, effective October 1, 2011, for individual taxpayers, and January 1, 2011, for all other taxpayers;
- limits itemized deductions in computing taxable income;
- expands the list of services subject to sales tax and makes permanent a temporary sales tax rate increase;
- increases the parking tax rate to 18 percent from 12 percent;
- increases to 110 percent from 100 percent the prior year tax liability estimated tax safe harbor;
- requires sales/use tax collection by "nexus" and "remote" vendors selling via the Internet to District purchasers;
- increases the hospital "bed tax" to $2529 in 2011, and to $3,788 in 2012 through 2014; and
- modifies property tax rate calculations, among other changes.
