District of Columbia – Emergency legislation brings significant changes to business, individual, sales and other taxes

State and Local Tax
On July 14, 2014, the District of Columbia Council voted 12 to 1 to approve a motion to override Mayor Vincent Gray’s veto of the FY 2015 Budget Support Emergency Act, which makes significant changes to the business franchise tax, the individual income tax and the sales tax provisions. The Mayor delivered his veto on Friday July 11, 2014.

The Emergency Act does not need Congressional approval and is effective immediately and remains in effect for no longer than 90 days. The Emergency Act is comprised of the same language of the FY 2015 Budget Support Act.  The Emergency Act is in effect to cover the period until the Permanent Act is approved by Congress. The Permanent Act, also known as Bill 20-750, passed the required two votes from the Council. In order for the Permanent Act to become law it must be sent to the Mayor. If he signs the Permanent Act or his veto is overridden by the Council, it will be sent to the US Congress for a 30 day review period before becoming law. 


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