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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 9. TAXATION AND ASSESSMENTS |
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Chapter 9-7. PERSONAL PROPERTY TAX |
Section 9-709. PERSONAL PROPERTY TAX EXEMPTION CREDIT FOR TELECOMMUNICATION COMPANIES
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709.1Subject to the provisions of §§ 710.2 and 710.3 for the personal property tax year beginning July 1, 1988 and ending June 30, 1989 (tax year 1989), and for each succeeding year, each telecommunication company shall be allowed a credit against personal property tax imposed for the least of one of the following:
(a) The amount of property tax due;
(b) The amount of gross receipts taxes paid for the twelve (12) months immediately preceding the personal property tax year; or
(c) The amount of personal property tax reported for the tax year, multiplied by the following fraction:
Step One
Column (1)
Column (2)
Column (3)
Column (4)
Current personal property tax due before Column (4) credit
X
Receipts on which District gross receipts tax is paid for twelve preceding months
X
Value of personal property everywhere July 1 of Column (1) tax
tax year
=
Credit against Column (1) tax not to exceed limits of this section
Cross receipts everywhere for twelve months preceding Column (1) tax year
Value of property subject to District personal property tax on July 1 of Column (1) tax year
The following are examples of the application of § 709.1:
(1) The taxpayer has property valued at one hundred thousand dollars ($ 100,000) subject to District personal property tax, and personal property everywhere of one million dollars ($ 1,000,000) on July 1, 1988. The amount of personal property tax due is three thousand one hundred dollars ($ 3,100). The corporation's total gross receipts everywhere for the twelve (12) month period which ended June 30, 1988, are twelve million dollars ($ 12,000,000), and receipts on which District gross receipts taxes were paid are one million dollars ($ 1,000,000) for this tax year. District gross receipts taxes paid are sixty-seven thousand dollars ($ 67,000). In this instance, the amount of the credit allowed on the tax year 1989 property tax return is two thousand five hundred eighty-three dollars ($ 2,583), the least of one the following:
(a) The Column (1) tax of three thousand one hundred dollars ($ 3,100);
(b) The District gross receipts tax paid of sixty-seven thousand dollars ($ 67,000); or
(c) The results of the following computation, which is two thousand five hundred and eighty-three dollars ($ 2,583):
(1)
(2)
(3)
(4)
$ 3,100
X
$ 1,000,000
X
$ 1,000,000
=
$ 2,583 exemption
$ 12,000,000
$ 100,000
(2) Same facts as example (1) except that receipts subject to District gross receipts tax were one million four hundred thousand dollars ($ 1,400,000). In this instance, the allowable credit is three thousand one hundred dollars ($ 3,100), the amount of personal property tax payable to the District.
(1)
(2)
(3)
(4)
$ 3,100
X
$ 1,400,000
X
$ 1,000,000
=
$ 3,617 exemption
$ 12,000,000
$ 100,000
709.2If the allocation provisions of this section do not fairly represent the extent of the personal property tax exemption, the taxpayer may petition for, or the Mayor may require, the employment of any other method to effectuate an equitable allocation of the taxpayer's personal property tax exemption.
709.3As used in § 709.1, the term "value of personal property" shall mean, for both the numerator and denominator of the fraction, that amount carried on the taxpayer's balance sheet at original cost for the personal property shown in the fraction.
709.4The numerator and denominator of Column (3) property values shall include property subject to the personal property tax under the provisions of the Personal Property Tax Amendment Act of 1986, effective February 28, 1987 (D.C. Law 6-212; D.C. Code § 47-1521 et seq.) without regard for any exemption from the tax.