In response to concerns that the District of Columbia needed to explore new or broadened revenue sources, the D.C. Council established D.C.’s Tax Revision Commission to comprehensively review the District’s tax code. The Commission’s mandate is to make tax policy recommendations, and it began meeting in 2022 with the intent of making tax recommendations to the council and mayor. Throughout 2023, the Commission met with tax and fiscal policy experts, as well as community and industry representatives. Based on these meetings, it drafted and released a list of proposals for review, including the creation of a data excise tax and business activity tax. The Commission is scheduled to hold its next meeting on October 9 to finalize its recommendations.
In the September 2024 installment of “A Pinch of SALT” in Tax Notes State, Eversheds Sutherland attorneys Charles Kearns and Charles Capouet critique the Commission’s recent tax proposals, noting that they are dubious and may be subject to legal challenges.
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