*NOTE: This section includes amendments by temporary legislation that will expire on March 1, 2025. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*
(a) A tax is imposed upon all vendors for the privilege of selling at retail certain tangible personal property and for the privilege of selling certain selected services (defined as “retail sale” and “sale at retail” in this chapter). The rate of such tax on the gross receipts from sales of or charges for such tangible personal property and services shall be 6.0% before October 1, 2025, 6.5% beginning on October 1, 2025, and 7.0% beginning on October 1, 2026, and continuing thereafter; except, that:
(1) The rate of tax shall be 18% of the gross receipts from the sale of or charges for the service of parking or storing of motor vehicles or trailers, except the service of parking or storing of motor vehicles or trailers on a parking lot owned or operated by the Washington Metropolitan Area Transit Authority and located adjacent to a Washington Metropolitan Area Transit Authority passenger stop or station;
(2)(A) The rate of tax shall be 10.20% of the gross receipts from the sale of or charges for any room or rooms, lodgings, or accommodations furnished to a transient by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients;
(B) If the occupancy of a room or rooms, lodgings, or accommodations is reserved, booked, or otherwise arranged for by a room remarketer, the tax imposed by this paragraph shall be determined based on the net charges and additional charges received by the room remarketer.
(3) The rate of tax shall be 9% of the gross receipts from the sale of or charges for:
(A) Food or drink prepared for immediate consumption as defined in § 47-2001(g-1) or spirituous or malt liquors, beer, and wine sold by an alcoholic beverage licensee acting under authority of §§ 25-112(h)(1), 25-113(a)(3)(C), or 25-113.01(f) or (g);
(B) Spirituous or malt liquors, beers, and wine sold for consumption on the premises where sold.
(C) [Repealed].
(3A) The rate of tax shall be 10.25% of the gross receipts of the sales of or charges for spirituous or malt liquors, beers, and wine sold for consumption off the premises where sold, unless sold by an alcoholic beverage licensee acting under authority of §§ 25-112(h)(1), 25-113(a)(3)(C), or 25-113.01(f) or (g);
(4) [Repealed].
(4A) The rate of tax shall be 6.00% of the gross receipts from the sale of or charges for tangible personal property or services by legitimate theaters, or by entertainment venues with 10,000 or more seats, excluding any such theaters or entertainment venues from which such taxes are applied to pay debt service on tax-exempt bonds;
(4B) The rate of tax shall be 9.25% of the gross receipts from the sale of or charges for rental or leasing of rental vehicles and utility trailers as defined in § 50-1505.01;
(5) [Repealed].
(6) [Repealed].
(7)(A) The rate of tax shall be 6% of the gross receipts from the sale of or charges for medical cannabis, as defined in § 7-1671.01(12), except for sales or charges occurring during the period of April 15, 2024 through April 28, 2024, which is established as the 4/20 Medical Cannabis Sales Tax Holiday Week for year 2024.
(B) The proceeds of the tax collected under subparagraph (A) of this paragraph shall be deposited in the Healthy DC and Health Care Expansion Fund established by [§ 31-3514.02]; except, that all revenue above the amount certified in the approved Fiscal Year 2023 budget for Fiscal Year 2023 shall be deposited in [§ 7-1671.08b].
(8) The rate of tax shall be 8% of the gross receipts from the sale of or charges for soft drinks.
(b) [Repealed].
(c) [Repealed].
(d)(1) For fiscal years ending before October 1, 2023, 5% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before October 30, 2018, shall be dedicated to the Arts and Humanities Fund, established by § 39-205.01.
(2) For fiscal years beginning after September 30, 2023, there shall be dedicated to the Arts and Humanities Fund from the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section, the following amounts:
(A) In Fiscal Year 2024 and Fiscal Year 2025, the lesser of:
(i) 5% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before October 30, 2018; or
(ii) An amount equal to 102% of the amount dedicated to the Arts and Humanities Fund in the prior fiscal year pursuant to this subsection.
(B) In Fiscal Year 2026, the lesser of:
(i) 4.615% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before October 30, 2018; or
(ii) An amount equal to 102% of the amount dedicated to the Arts and Humanities Fund in the prior fiscal year pursuant to this subsection; and
(C) In Fiscal Year 2027 and each subsequent fiscal year, the lesser of:
(i) 4.286% of the sales tax revenue collected at the rate provided by the lead-in language of subsection (a) of this section that is not dedicated to legislatively proposed or existing tax increment financing districts or pledged to the benefit of holders of District bonds or notes existing on or before October 30, 2018; or
(ii) An amount equal to 102% of the amount dedicated to the Arts and Humanities Fund in the prior fiscal year pursuant to this subsection.
