D.C. Code § 47-1807.02

Current through codified legislation effective September 18, 2024

Section 47-1807.02 - Tax on corporations - Levy and rates

(a) Except as exempted under subchapter II of this chapter, for the privilege of carrying on or engaging in any trade or business within the District and of receiving income from sources within the District, there is levied:

(1) For 1 taxable year beginning after December 31, 1974, a tax at the rate of 12% upon the taxable income of every corporation, whether domestic or foreign;

(2) For the taxable years beginning after December 31, 1975, a tax at the rate of 9% upon the taxable income of every corporation, whether domestic or foreign, except that, effective October 1, 1984, the rate of tax shall be 10% upon the taxable income for any taxable period, except that for taxable years beginning after December 31, 1994, the rate of tax shall be 9.5%;

(3) For the taxable years beginning after December 31, 2002, a tax at the rate of 9.5% upon the taxable income of every corporation, whether domestic or foreign.

(3A) A surtax at the rate of 2.5% on the tax determined under paragraph (2) or (3) of this subsection, as applicable, for any tax period beginning after September 30, 1992.

(3B) A surtax at the rate of 2.5%, separate from and in addition to, the surtax imposed by paragraph (3A) of this subsection, on the tax determined under paragraph (2) or (3) of this subsection, as applicable, for any tax period beginning after September 30, 1994.

(4) For the taxable years beginning after December 31, 2003, a tax at the rate of 9.975% upon the taxable income of every corporation, whether domestic or foreign.

(5) For the taxable year beginning after December 31, 2014, but before January 1, 2016, a tax at the rate of 9.4% upon the taxable income of every corporation, whether domestic or foreign;

(6) For the taxable year beginning after December 31, 2015, but before January 1, 2017, a tax at the rate of 9.2% upon the taxable income of every corporation, whether domestic or foreign;

(7) For the taxable year beginning after December 31, 2016, but before January 1, 2018, a tax at the rate of 9.0% upon the taxable income of every corporation, whether domestic or foreign; and

(8) For taxable years beginning after December 31, 2017, a tax at the rate of 8.25% upon the taxable income of every corporation, whether domestic or foreign.

(b) The minimum tax payable under this section shall be $250. If District gross receipts are greater than $1 million, the minimum tax payable shall be $1,000. Corporations or financial institutions including International Banking Facilities shall not be exempt from the minimum tax payable under this section even if the business or source income is exempt under other provisions of this chapter.

(c) The taxes imposed by this section shall, during the 3 tax years beginning after June 30, 1981, be subject to the transition rules provided in § 47-2507.

D.C. Code § 47-1807.02

July 16, 1947, 61 Stat. 345, ch. 258, art. I, title VII, § 2; Aug. 2, 1968, 82 Stat. 612, Pub. L. 90-450, title II, § 202(a); Oct. 31, 1969, 83 Stat. 178, Pub. L. 91-106, title VI, § 604(a)(1); Dec. 15, 1971, 85 Stat. 653, Pub. L. 92-196, title IV, §§ 401, 403; Oct. 21, 1975, D.C. Law 1-23, title VI, § 603, 22 DCR 2111; July 27, 1976, D.C. Law 1-77, § 2, 23 DCR 1218; Mar. 16, 1978, D.C. Law 2-58, § 201, 24 DCR 5765; Sept. 13, 1980, D.C. Law 3-95, § 105(b), 27 DCR 3509; Sept. 17, 1982, D.C. Law 4-150, § 104, 29 DCR 3377; June 22, 1983, D.C. Law 5-14, § 902, 30 DCR 2632; Sept. 26, 1984, D.C. Law 5-113, § 302(a)(1), 31 DCR 3974; Oct. 1, 1987, D.C. Law 7-29, § 2(g)(2), 34 DCR 5097; July 25, 1989, D.C. Law 8-17, § 2(d), 36 DCR 4160; June 14, 1994, D.C. Law 10-128, § 103(c), 41 DCR 2096; Sept. 28, 1994, D.C. Law 10-188, § 301(a)(1), 41 DCR 5333; enacted, Apr. 9, 1997, D.C. Law 11-254, §2, 44 DCR 1575; Oct. 20, 1999, D.C. Law 13-38, § 2702(i), 46 DCR 6373; Apr. 12, 2000, D.C. Law 13-91, § 168, 47 DCR 520; Oct. 3, 2001, D.C. Law 14-28, § 4102, 48 DCR 6981; Oct. 1, 2002, D.C. Law 14-190, § 802(c), 49 DCR 6968; June 5, 2003, D.C. Law 14-307, § 1002(a), 49 DCR 11664; Sept. 14, 2011, D.C. Law 19-21, § 8072(a), 58 DCR 6226; Feb. 26, 2015, D.C. Law 20-155, § 7012(c)(7), 61 DCR 9990; Oct. 8, 2016, D.C. Law 21-160, § 7028(c)(4), 63 DCR 10775; Dec. 13, 2017, D.C. Law 22-33, § 7172(e), 64 DCR 7652.

Sections 8073 and 8074 of D.C. Law 19-21 provided:

"Sec. 8073. Rules.

"The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issues rules to implement the provisions of this subtitle.

"Sec. 8074. Applicability.

"This subtitle shall apply as of December 31, 2010."

Section 4104 of D.C. Law 14-28 provided: " Section 47-1807.02(a)(3A) and (4) are repealed effective for all tax periods beginning after December 31, 2002."

Section 4103(a) of D.C. Law 14-28 provided: "Section 4102(a) shall apply for any tax period beginning after September 30, 1992."

Section 4103(b) of D.C. Law 14-28 provides: "Section 4102(b) shall apply for any tax period beginning after September 30, 1994".

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: Section 306(a) of D.C. Law 10-188 provided that the act shall expire 2 years after September 28, 1994, if the Board does not submit final financial requirements and a feasibility analysis to the Mayor and the Council as provided by § 10-1202.06(h).

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: See Historical and Statutory Notes following § 47-1807.02a.

Mayor authorized to issue regulations: Section 401 of D.C. Law 4-150 provided that the Mayor shall issue regulations necessary to carry out the provisions of the act.

Mayor authorized to issue rules: Section 1102 of D.C. Law 5-14 provided that the Mayor shall issue rules necessary to carry out the provisions of the act.

Audit of accounts and operation of Authority: See Historical and Statutory Notes following § 47-1807.02a.

Expiration of §§ 301, 302 and 303 of D.C. Law 10-188: Section 2(l)(1) of D.C. Law 12-142 provided that § 306(a) of D.C. Law 10-188, providing for the expiration of that act, is repealed. Section 2(l)(2) of D.C. Law 12-142 provided that the subsection shall apply as of February 27, 1997.

Audit of accounts and operation of Authority: See Historical and Statutory Notes following § 47-1807.02a.

Section 1003 of D.C. Law 14-307 provided: "Sec. 1003. Applicability. Section 1002 shall apply as of January 1, 2003."

Applicability

Section 7174 of Law 22-33 provided that the changes made to this section by Law 22-33 shall apply as of January 1, 2018.

Tax rate changes, authority of the Council of the District of Columbia, see § 47-504 . Washington Convention Center Authority, collection and allocation of taxes under this section, see § 10-1203.07 . .