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A RESOLUTION
21-477
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
May 3, 2016
To declare the existence of an emergency with respect to the need to amend Chapter 18 of Title 47 of the District of Columbia Official Code to clarify the franchise tax rates so that they correspond with existing law regarding tax reform procedure and priority.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Franchise Tax Clarification Emergency Declaration Resolution of 2016”.
Sec. 2. (a) As part of the Tax Revision Commission Implementation Amendment Act of 2014, effective February 26, 2015 (D.C. Law 20-155; 62 DCR 3601), the District triggered step reductions to the unincorporated and incorporated business franchise tax rate in addition to a number of other revisions to the District’s tax code.
(b) The tax triggers, set forth at D.C. Official Code § 47-181, codified the step reductions and reduced the unincorporated and incorporated business franchise tax rate in 0.2 % increments. Thus, the unincorporated and incorporated business franchise tax rate would reduce from 9.4 % to 9.2 %, and in subsequent triggers from 9.2 % to 9.0 %.
(c) Although the tax reform procedure and priority in D.C. Official Code § 47-181 is clear, a corresponding amendment to the unincorporated and incorporated business franchise tax rate, codified at D.C. Official Code § 47-1807, is necessary to accurately reflect the tax reform procedure and implementation.
(d) The Council adopted an identical fix in the Fiscal Year 2016 Budget Support Clarification Emergency Amendment Act of 2016, effective January 27, 2016 (D.C. Act 21-292; 63 DCR 1211). However, that provision, which went into effect on January 27, 2016, expired on April 26, 2016. As such, it is necessary to pass an emergency measure to continue this clarification until the permanent fix is adopted.
Sec. 3. The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Franchise Tax Clarification Emergency Amendment Act of 2016 be adopted after a single reading.
Sec. 4. This resolution shall take effect immediately.