D.C. modifies combined reporting, decreases sales tax, and repeals/re-enacts the Compact

August 2013


On July 30, 2013, the District enacted the Fiscal Year 2014 Budget Support Emergency Act of 2013 (Act), which marks the latest development in the District’s attempts to implement and enforce mandatory unitary combined reporting. While many of the provisions are identical to emergency legislation passed in October 2012, taxpayers should be aware that the Act modifies statutory language related to unincorporated businesses to be consistent with how such entities are treated in the combined reporting regulations finalized in September 2012. Taxpayers that filed their 2011 and 2012 tax year returns relying on guidance from the emergency legislation should ensure that their treatment is consistent with guidance found under the regulations.

The Act also implements a sales tax reduction, the repeal/re-enactment of the Multistate Tax Compact, and other tax changes.

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Peter Michalowski
National SALT Practice Leader
Tel: +1 (646) 471 5259

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