Section 9-461. RENTALS, LEASES, AND LICENSES

 

461.1For the purposes of the Act and this chapter, the word rental shall include rental, lease, license, or right to reproduce or use tangible personal property.

 

461.2Royalties paid, or any other basis of payment, for use of tangible personal property, shall be rentals subject to the tax.

 

461.3The tax shall be paid for rentals of films, records, or any type of sound transcribings to other than theaters and radio and television broadcasting stations.

 

461.4The tax shall be paid for rentals of clothing, formal wear, costumes, and articles of similar nature.

 

461.5The tax is payable on the rentals of linens, towels, dresses, aprons, caps, coats, uniforms, or any other textiles to restaurants, hotels, motels, beauty parlors, barber shops, and for any other commercial use, the essential part of which includes the recurring service of laundering or cleaning of these items.

 

461.6The tax shall be computed on the gross receipts from rentals payable without any deduction whatsoever for expenses incident to the conduct of the business, or for service or maintenance which the lessor might furnish.

 

461.7For the purpose of the imposition and payment of the tax each period for which a rental is payable shall be considered a complete sale, such as the following examples:

 

(a) In the case of a weekly rate, each week shall be considered a complete sale; and

 

(b) In the case of a continuing lease or contract with or without a definite expiration date, where rental payments are to be made monthly or on some other periodical basis, each installment or payment shall be deemed a complete sale at the time the installment or payment becomes payable.

 

461.8When tangible personal property, including mobile equipment as motor vehicles, trailers, and contractor's equipment, is rented, the tax shall be payable for such rental period during which the property is within the boundaries of the District.

 

461.9If tangible personal property is rented in the District and removed from the District for the complete duration of any rental period or periods, the tax is not payable on the gross receipts for any period or periods which begin after the removal of the property from the District and end before its return.

 

461.10If equipment is rented with an operator for a specific period to perform work directed by the lessee, the rental is a taxable sale.

 

461.11The tax shall not apply to charges for an operator who is hired with rental equipment if the charges for the operator are separately stated in an oral or written agreement, and if the charges are separately stated on the invoice rendered by the lessor to the lessee.

 

461.12The furnishing of equipment and an operator as part of a contract to perform a specific job in a manner to be determined by the owner of the equipment or the owner's operator shall be considered a service not subject to the tax.

 

461.13All transactions for the use of equipment and operator in which the consideration is determined on a time basis will be considered rentals subject to tax unless the parties enter into a written contract prior to the use of the property, which contract clearly shows that it is for the performance of a specific job and not the lease or rental of equipment.

 

source

Commissioners' Order 54-1415, 1 DCR 4 (July 19, 1954); as amended by Commissioners' Order 56-890 effective May 9, 1956, 2 DCR 304 (May 21, 1956); and by the Third Amendment to the Revenue Act of 1975 Act, D.C. Law 1.61, 22 DCR 4383 (February 12, 1976).