§ 47-368.03. Reduction in rates for certain excise taxes.

Effect of Amendments

D.C. Law 15-205 purported to repeal this section.

D.C. Law 15-320 repealed subsec. (d)(1) which had read as follows:

"(d)(1) The rate of tax imposed under §§ 47-2501 and 47-3902 shall be reduced from 11% to 10%, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial and budget plan for that fiscal year by at least $105 million."

D.C. Law 15-354 corrected D.C. Law 15-205 to repeal subsecs. (b) and (c), which had read as follows:

"(b)(1) The rate of tax imposed under §§ 42-1103(a)(1), 42-1103(a)(3), and 47- 903(a)(1) shall be reduced from 1.5% to 1.3% as provided under subsection (f) of this section, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for the fiscal year by at least $75 million.

"(2) If the rate of tax is reduced in accordance with paragraph (1) of this subsection, in any subsequent fiscal year, the rate of tax shall be further reduced from 1.3% to 1.1% as provided in subsection (f) of this section, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $75 million.

"(3) If the rate of tax is not reduced in accordance with paragraph (1) of this subsection, in any subsequent fiscal year, the rate of tax imposed under §§ 42- 1103(a)(1), 42-1103(a)(3), and 47-903(a)(1) shall be reduced from 1.5% to 1.1%, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $87 million.

"(4) If the annual revenue estimate made in the 4th quarter of any fiscal year exceeds the annual revenue estimate in the approved financial plan and budget for that fiscal year by at least $92.3 million, § 47-368.01 (b) shall not apply.

"(c)(1) The rate of tax imposed under § 42-1103(a)(2) shall be reduced from 3.0% to 2.6% as provided in subsection (f) of this section, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $75 million.

"(2) If the rate of tax is reduced in accordance with paragraph (1) of this subsection, in any subsequent fiscal year, the rate of tax shall be further reduced from 2.6% to 2.2% as provided in subsection (f) of this section, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $75 million.

"(3) If the rate of tax is not reduced in accordance with paragraph (1) of this subsection, in any subsequent fiscal year, the rate of tax imposed under § 42- 1103(a)(2) shall be reduced from 3.0% to 2.2% as provided in subsection (f) of this section, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $87 million."

D.C. Law 16-161 repealed subsec. (d)(2) which had read as follows:

"(2) The rate of tax imposed under § 47-2501(d-1) shall be reduced from $0.0077 to $0.007, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $105 million."

Temporary Amendments of Section

Section 2(a) of D.C. Law 16-29, in subsec. (d), rewrote par. (1) and added a sentence to par. (2). Par. (1) reads as follows:

"(1) The rate of tax imposed under § 47-3902 shall be reduced from 11% to 10%, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $ 105 million. This paragraph shall apply as of January 1, 2005 and shall expire on April 8, 2005."

The new sentence in par. (2) reads as follows: "This paragraph shall expire on January 1, 2005.".

Section 4(b) of D.C. Law 16-29 provides that the act shall expire after 225 days of its having taken effect.

Section 2(a) of D.C. Law 16-102 repealed par. (d)(2).

Section 11(b) of D.C. Law 16-102 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) addition of section, see § 1802(b) of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

For temporary (90 day) addition of section, see § 1802(b) of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).

For temporary (90 day) amendment of section, see § 1802 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).

For temporary (90 day) repeal of section, see § 1233(a)(2) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) allocation of additional revenue in fiscal year 2005, see § 1234 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) repeal of section, see § 1233(a)(2) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) allocation of additional revenue in fiscal year 2005, see § 1234 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of section, see § 2 of Telecommunications Taxes Reduction Emergency Act of 2004 (D.C. Act 15-729, January 19, 2005, 52 DCR 1956).

For temporary (90 day) amendment of section, see § 2(a) of Utility Taxes Technical Corrections Emergency Act of 2005 (D.C. Act 16-86, May 18, 2005, 52 DCR 5265).

For temporary (90 day) amendment of section, see § 2(a) of Utility Technical Corrections Congressional Review Emergency Act of 2005 (D.C. Act 16-177, October 4, 2005, 52 DCR 9074).

For temporary (90 day) amendment of section, see § 2(a) of Finance and Revenue Technical Amendments Emergency Amendment Act of 2006 (D.C. Act 16-260, January 26, 2006, 53 DCR 780).

For temporary (90 day) amendment of section, see § 2(a) of Finance and Revenue Technical Amendments Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-361, April 27, 2006, 53 DCR 3619).

For temporary (90 day) amendment of section, see §§ 201(a), 202 of Natural Gas and Home Heating Oil Taxation Relief and Ratepayer Clarification Emergency Act of 2006 (D.C. Act 16-376, May 19, 2006, 53 DCR 4392).

For temporary (90 day) amendment of section, see §§ 201(a) and 202(a)of Natural Gas and Home Heating Oil Taxation Relief and Ratepayer Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-443, July 21, 2006, 53 DCR 6436).

Legislative History of Laws

For Law 14-307, see notes following § 47-368.01.

Law 15-320, the "Ballpark Omnibus Financing and Revenue", was introduced in Council and assigned Bill No. 15-1028, which was referred to the Committee of Finance and Revenue. The Bill was adopted on first and second readings on November 30, 2004, and December 21, 2004, respectively. Signed by the Mayor on December 29, 2004, it was assigned Act No. 15-717 and transmitted to both Houses of Congress for its review. D.C. Law 15-320 became effective on April 8, 2005.

For Law 15-354, see notes following § 47-340.03.

Law 16-29, the "Utility Taxes Technical Corrections Temporary Act of 2005", was introduced in Council and assigned Bill No. 16-266 and was retained by Council. The Bill was adopted on first and second readings on May 3, 2005, and June 7, 2005, respectively. Signed by the Mayor on July 14, 2005, it was assigned Act No. 16-138 and transmitted to both Houses of Congress for its review. D.C. Law 16-29 became effective on October 18, 2005.

Law 16-161, the "Natural Gas and Home Heating Oil Taxation Relief and Ratepayer Clarification Act of 2006", was introduced in Council and assigned Bill No. 16- 462 which was referred to the Committee on Finance and Revenue.  The Bill was adopted on first and second readings on May 2, 2006, and June 6, 2006, respectively.   Signed by the Mayor on June 26, 2006, it was assigned Act No. 16-402 and transmitted to both Houses of Congress for its review.  D.C. Law 16- 161 became effective on September 19, 2006.

Effective Dates

Section 1233(a)(2) of D.C. Law 15-205, as amended by D.C. Law 15-354, § 100(b), provides: "This subsection shall apply as of August 2, 2004."

Miscellaneous Notes

Section 1234 of D.C. Law 15-205 provides:

"The additional annual revenue certified by the Chief Financial Officer of the District of Columbia which exceeds the annual revenue estimate incorporated in the approved financial plan and budget as of May 14, 2004 shall be allocated and expended in fiscal year 2005 in the following order of priority:

"(1) An amount not to exceed $2 million to the Office of Property Management for the costs of transitional office space;

"(2) An amount not to exceed $1,200,000 to the District of Columbia Public Library for general operations;

"(3) An amount not to exceed $256,000 to the DC Police and Firefighters Retirement & Relief Board for the increased cost of processing retirement hearings and rulings; and

"(4) An amount not to exceed $132,600 for the Police and Fire Clinic for costs associated with processing disability retirement cases."

Applicability: Section 202(a) of D.C. Law 16-161 provides that section 201(a) and (b)(1) through (3) shall apply as of January 1, 2005.