New Tax Rates Take Effect in DC on October 1

D.C. residents should be prepared to spend more money starting October 1 this year, since new tax rates are taking effect in the district, according to the press release from D.C. Office of Tax and Revenue (OTR).

Tax rate for general sales and use has been increased from 5.75 percent to 6 percent. For liquors, beers, and wine, the tax has been hiked from 10 to 10.25 percent.  At the same time, the total tax for legitimate theaters and entertainment venues has also been increased from 5.75 percent to 6 percent.

However, feminine hygiene products have been exempted from sales and use taxes.

“The total rates for sales or charges for food or drink prepared for immediate consumption (10 percent) and for the service of parking or storing vehicles (18 percent) remain unchanged,” the OTR noted. “The total rate of tax on gross receipts for the sale of or charges for any rooms, lodging or accommodations will increase from 14.8 percent to 14.95 percent.”

Taxes on tobacco items have also been revised. The cigarettes will get more expensive. The total tax for them will be increased from $2.94 to $4.94 per pack of 20, according to OTR. For other tobacco products, the tax rate will be hiked from 60 percent to 96 percent of wholesale sales.