District of Columbia Administrative Code

3999 DEFINITIONS 3999.1 For the purposes of this chapter, the following words, terms, and phrases shall have the following meanings, unless otherwise required by the context of this chapter: Applicable entity - (1) An employer or other sponsor of an employment-based health plan; …

400 GENERAL PROVISIONS 400.1 The District Sales Tax Act (D.C. Code §§ 47-2001 et seq.), as amended (which is referred to in this chapter as the "Act"), imposes a tax upon every vendor in the District selling certain tangible personal property at retail and selling certain selecte…

401 PERSONS FURNISHING NON-TAXABLE SERVICES 401.1 Persons who furnish a nontaxable service are considered consumers of all materials and supplies purchased to operate that business. 401.2 Persons who furnish non-taxable services must reimburse the vendors from whom they purchase …

402 CASUAL AND ISOLATED SALES 402.1 Casual and isolated sales within the exemption provided by D.C. Code § 47-2005(7) are limited to sales of a non-recurring nature that are made by a vendor who is not regularly engaged in the business of making sales at retail. The casual and is…

403 INCONSEQUENTIAL ELEMENTS 403.1 The Act exempts from the tax the gross receipts from professional, insurance or personal service transactions which involve sales of tangible personal property as inconsequential elements and where no separate charges for such sales of tangible …

404 INTERSTATE COMMERCE 404.1 The sales tax shall be applicable to the receipts from all sales even though the property sold and delivered in the District is for exclusive use in interstate commerce. 404.2 Receipts from the sale of tangible personal property for use in conducting…

405 STORAGE, USE, OR CONSUMPTION OF PROPERTY IN THE DISTRICT BY A PURCHASER 405.1 If tangible personal property is purchased (in the District or outside the District) by any person for the purpose of storage, use, or consumption of that property within the District, the purchase …

406 SALES PRICE: CASH DISCOUNTS 406.1 In addition to the provisions of the Act, (D.C. Code § 47-2001(p)(2)), the term "sales price," as used in the Act, shall not include any of the exceptions set forth in this section. 406.2 For the purposes of D.C. Code § 47-2001(p)(2)(A), if a…

407 SALES PRICE: LABOR OR SERVICES 407.1 In addition to the provisions of the Act (D.C. Code § 47-2001(p)(2)), the term "sales price," as used in the Act, shall not include any of the exceptions set forth in this section. 407.2 For the purposes of D.C. Code § 47-2001(p)(2)(C), th…

408 SALES PRICE: TAXES, INTEREST, AND OTHER CHARGES 408.1 In addition to the provisions of the Act (D.C. Code § 47-2001(p)(2)), the term "sales price," as used in the Act, shall not include any of the exceptions set forth in this section. 408.2 The amount of reimbursement of taxe…

409 INSTALLMENT, LAY-AWAY, AND OTHER CREDIT OR DEFERRED PAYMENT SALES 409.1 A vendor making any sale on credit shall report the total sale price of the property sold on the return covering the month in which the sale was made and pay the tax on the sale. 409.2 The term "sale on c…

410 BAD DEBTS AND DISCOUNTS ON SALES OF ACCOUNTS RECEIVABLE 410.1 The District sales tax is required to be reported and paid to the District on the basis of the full amount of the sale price of all property subject to tax. 410.2 Neither the amount of tax required to be reported a…

411 TAXABLE SERVICES UNDER CONTRACT PRIOR TO JULY 1, 1989 411.1 Each vendor who sells tangible personal property or provides services pursuant to a lump sum contract entered into prior to July 1, 1989, in which the taxable sales of property or services are included in the price o…

412 COLLECTION OF SALES TAX BY VENDORS 412.1 The reimbursement for the tax to be collected by the vendor from the purchaser shall be stated separately from the sales price of the property sold or services rendered. 412.2 In the case of a vendor not engaged in business in the Dist…

413 AMOUNT OF SALES TAX COLLECTION BY VENDORS 413.1 If the gross receipts from any sale are exempt from the tax, the vendor shall not collect reimbursement for any tax from the purchaser. 413.2 If a sale is subject to the tax, the vendor shall add to the sales price and collect r…

414 PURCHASES FOR RESALE 414.1 The burden of proving that a sale of tangible personal property or taxable services is not a sale at retail is upon the vendor, unless the vendor timely takes in good faith a certificate from the purchaser that the property is purchased for resale. …

415 CERTIFICATES OF REGISTRATION 415.1 Each vendor engaged in the business of making any retail sales subject to tax under the Act (including manufacturers, wholesalers, jobbers, and others), and every person purchasing tangible personal property for resale or for any other nonta…

416 UNLAWFUL ADVERTISING 416.1 It shall be unlawful for any vendor to advertise, hold out, or state to the public or to any customer, directly or indirectly, that the reimbursement for the tax or any part of the tax to be collected by the vendor under this chapter will be assumed…

417 CERTIFICATES OF EXEMPTION 417.1 All sales of tangible personal property or of taxable services are presumed not to be exempt from sales and use tax. The burden of proving that a sale of tangible personal property or taxable services is not a sale at retail is upon the vendor …

418 USE OF CERTIFICATES OF EXEMPTION BY SEMIPUBLIC INSTITUTIONS 418.1 Tangible personal property purchased and paid for by a semipublic institution which has obtained a certificate of exemption is exempt from the District sales and use tax if the property is for use and consumpti…

419 SALES TO FOREIGN GOVERNMENT AGENCIES, DIPLOMATS, EMPLOYEES, AND MILITARY PERSONNEL 419.1 By reason of privileges, exemptions, and immunities granted to certain foreign governments, those governments and their agencies (including embassies, legations, and commissions) may make…

420 SALES TAX RETURNS 420.1 Periodic returns (D.C. Code § 47-2015) shall be filed with the Deputy Chief Financial Officer on or before the 20th day of the month following the reporting period by the following persons: (a) Each vendor who has made any sale at retail during the pre…

421 EXTENSION OF TIME TO FILE RETURNS 421.1 The Deputy Chief Financial Officer may, for good cause shown, extend the time for filing any return for a period not to exceed thirty (30) days. 421.2 Failure of a vendor or retailer to receive a return form is not grounds for extending…

422 DISCLOSURE OF SALES AND USE TAX INFORMATION 422.1 The Deputy Chief Financial Officer, in his or her discretion, may divulge or make known any information contained in or related to any report, application, license, or return required under the provisions of the Act, in accord…

423 BOTTLED WATER DELIVERY SERVICE 423.1 The sale by a bottled water delivery service of bottled water by the gallon generally for use with and to be dispensed from a water cooler or similar type of water dispenser is subject to sales tax. 423.2 Persons operating a bottled water …

424 BOWLING ALLEY OR A BILLIARD PARLOR SERVICE 424.1 The sale of or charge for the service of a bowling alley or a billiard parlor is subject to sales tax. 424.2 The total amount charged for bowling is subject to tax. Taxable receipts for bowling shall include all fees or charges…

425 CAR WASHING SERVICES 425.1 The sale of or charge for the service of car washing, including cleaning, washing, waxing, polishing, or detailing an automotive vehicle is subject to sales tax. 425.2 The sale of or charge for self-service car washing is not subject to sales tax. 4…

426 CARPET AND UPHOLSTERY CLEANING SERIVCES 426.1 The sale of or charge for the service of carpet and upholstery cleaning, including the cleaning or dyeing of used rugs, carpets, or upholstery, or for rug repair is subject to sales tax. 426.2 Persons operating places of business …

427 HEALTH-CLUB SERVICES 427.1 The sale of or charge for the services of a health club subject to sales and use tax. 427.2 Health-club means a fitness club, fitness center, or gym the purpose of which is physical exercise, and includes the use of, access to, or membership to, an …

428 SERVICE OF STORAGE OF HOUSEHOLD GOODS 428.1 The sale of or charge for the service of the storage of household goods through renting or leasing space for self-storage, including rooms, compartments, lockers, containers, or outdoor space, except general merchandise warehousing …

429 TANNING SERVICES 429.1 The sale of or charge for tanning services are subject to sales and use tax. 429.2 Tanning services means providing individuals a manmade tan, including sun tanning and spray tanning, whether or not assisted by an employee of the tanning business. 429.3…

430 ADMISSION TO PUBLIC EVENTS 430.1 In addition to events listed in the Act, the tax on admissions to public events shall apply to (but is not limited to) admission charges for trade shows, boat shows, home shows, horse shows, and dog shows. 430.2 Charges for the use of recreati…

431 ADVERTISING, ADVERTISING AGENCIES, AND COMMERCIAL ARTISTS 431.1 Sales by vendors of direct mail advertising pieces, circulars, hand-outs, throw-aways, and similar advertising matter shall be subject to the sales tax on the sales price and reimbursement for sales tax shall be …

432 ARTISTS 432.1 The sale of pictures produced by artists, including, but not limited to, those produced in oil, charcoal, pen and ink, pencil, water colors, pastels, tempera, and similar media, shall be taxable sales. 432.2 The services performed by an artist to clean, repair, …

433 AUCTIONEERS 433.1 Persons engaged in the business and making retail sales at auction of tangible personal property owned by them or other persons, shall be considered to be retailers for the purposes of the Act, and are required to obtain a certificate of registration and fil…

434 BOOK MATCHES 434.1 The gross receipts from the sale of book matches to be used or consumed for any purpose other than resale shall be subject to the tax, including gross receipts from sales of book matches where the matches are given free of charge with cigars, cigarettes, or…

435 BOOKBINDING AND RELATED SERVICES 435.1 Bookbinding and finishing services rendered in connection with the printing of tangible personal property shall be considered an inseparable part of the fabrication or production of a finished article, and as such are subject to tax. How…

436 CATERERS 436.1 The term "caterer," as used in this chapter, means any person who is engaged in the business of preparing food, meals or beverages, for the purposes of consumption at a place designated by the purchaser. 436.2 If a sales agreement with a caterer requires the ca…

437 COIN-OPERATED DEVICES 437.1 Gross receipts from the sale of tangible personal property through vending machines and other automatic devices are subject to the tax. 437.2 Gross receipts from the sales of food and drink, as described in § 114(a)(1) of the Act and defined in § 1…

438 CONSTRUCTION, REPAIR, OR ALTERATION OF REAL PROPERTY 438.1 Effective July 1, 1989, pursuant to the D.C. Revenue Amendment Act of 1989, landscaping services and landscaping construction shall be considered sales at retail as defined in D.C. Code § 47-2001(n)(1). Therefore, the…

439 CONTAINERS, CARTONS, BOXES, AND SIMILAR ITEMS 439.1 Sales of containers, shipping cartons, bottles, boxes, excelsior, bale binding, and similar items shall be classified into three (3) groups. 439.2 The first group shall include those sales in which the container, shipping ca…

440 FABRICATION OR PRODUCTION OF PERSONAL PROPERTY 440.1 The tax shall be charged on the full sales price for the production or fabrication of tangible personal property on special order, even if charges for labor are segregated from the cost of the materials. 440.2 If a new item…

441 FLORISTS 441.1 Florists shall be engaged in the business of selling tangible personal property when they sell flowers, wreaths, bouquets, potted plants, and other similar items. 441.2 Receipts from sales of the items listed in § 441.1 to a retail customer shall be subject to …

442 FOOD OR DRINK PREPARED FOR IMMEDIATE CONSUMPTION 442.1 In addition to the definition set forth in the Act [which is codified at D.C. Code § 47-2001(n)(1)(a)], the term "food or drink prepared for immediate consumption" includes sales made by a street or sidewalk vendor who ha…

443 FOOD SERVED OR SOLD TO STUDENTS, PATIENTS, EMPLOYEES, FOOD STAMP RECIPIENTS, AND OTHERS 443.1 Meals and food products served, with or without charge, by a semi-public personal or professional service institution or organization (which holds a Certificate of Exemption issued u…

444 GAS, OIL, SOLID FUEL, AND STEAM 444.1 Sales of natural or artificial gas, oil, electricity, solid fuel or steam are exempt from the payment of sales tax, except as provided in this section. 444.2 The sales tax applies to the receipts from the sale of natural or artificial gas…

445 GOVERNMENT PURCHASES AND SALES 445.1 In addition to the specific exemptions provided in the Act (D.C. Code § 47-2005), gross receipts from the types of sales set forth in this section shall be exempt from the tax imposed by the Act. 445.2 For the purposes of sales to the Dist…

446 HOTEL ROOMS, LODGINGS, AND OTHER ACCOMMODATIONS 446.1 For the purposes of the Act (D.C. Code § 47-2001(n)(1)(C)), a "transient" is a person who has the right to occupy any room or rooms, lodgings or accommodations for a period of ninety (90) days or less during any one contin…

447 LABELS AND OTHER PRINTED MATERIAL SOLD TO MANUFACTURERS 447.1 Sales of labels or name plates, and the printing on the labels or nameplates, to manufacturers or wholesale merchants shall be deemed made for the purpose of resale (not taxable) if the purpose of the purchaser is …

448 LAUNDRIES, DRY CLEANERS, AND LINEN SUPPLIERS 448.1 Receipts from the sale of services for laundering, dry cleaning, or pressing of any kind of tangible personal property shall not be taxable. 448.2 The rental of textiles to commercial users shall be taxable, even if launderin…