Other Business Taxes FAQs

Where can I get more information on Exempt Organizations?
Please visit OTR's Exemptions page.

How can an exempt organization renew an exemption certificate?
All exempt organizations must renew their exemption certificates at MyTax.DC.gov once they have received notice that their exemption is set to expire. While not yet required, OTR encourages all taxpayers to proactively renew their exemption certificates to avoid the possibility of an expiration.

Can the new version of the District of Columbia Tax Exempt Certificate be used in the same manner as the old certificate to exempt an organization from tax at a hotel?
Exempt organizations can use their updated exemption certificate in the same manner as the old exemption certificate.

• Note: New exemption certificates will have an expiration date printed on the certificate, after which time they will no longer be valid.

What if an exempt organization received a renewal notice for exemption?
Exemption organizations may renew their exemptions at MyTax.DC.gov. For questions and assistance, exempt organizations may contact OTR’s e-Service Unit at e-services.otr.dc.gov.

How can an organization be recognized as tax exempt from DC Franchise Tax, DC Sales Tax or DC Personal Property Tax?
The responsibility for establishing tax exempt status shall rest upon the organization. An organization that is recognized as tax exempt by the Internal Revenue Service (IRS) is not automatically recognized as tax exempt under the laws of the District of Columbia. To establish tax exemption, an organization must first complete form FR 500 to register in DC. Once registered they shall file Form FR-164 on MyTax.DC.gov. 

What type of exempt organizations may qualify for personal property tax exemption?
Semipublic institutions (IRC § 501(c) (3)) may qualify for personal property tax exemption.

What is a semipublic institution?
Semipublic institution means any corporation, and any community chest, fund or foundation, organized exclusively for religious, scientific, charitable, or educational purposes, including hospitals, no part of the net earnings of which insures to the benefit of any private shareholder or individual.

What type of exempt organizations may qualify for sales tax exemption?
Semipublic institutions may qualify for sales tax exemption provided the organization has a location/office in the District of Columbia.

What is the effective date of a personal property tax exemption?
The effective date for a personal property tax exemption shall be the July 1 following the date of the initial application request.

What type of exempt organizations may qualify for franchise tax exemption?
Generally, most organizations recognized tax exempt by the Internal Revenue Service except social clubs (IRC § 501(c) (7)).

Are exempt organizations required to collect DC sales tax on sales of tangible personal property?
Yes, even though the exempt organization is exempt from DC Sales and Use Tax on purchases of tangible personal property or services.

What are the procedures for an individual to inspect applications and related financial documents of recognized exempt organizations by the District of Columbia?
Individuals desiring to inspect applications and related financial documents of organizations that have been recognized tax exempt shall direct their request in writing to the Chief Counsel, Office of Tax and Revenue, PO Box 556, Washington, DC 20044.

Who should I contact if my organization only conducts a few annual events and is not registered to collect sales tax?
If an exempt organization conducts a few yearly specific events (i.e. bake sale and other fundraising events) and is not registered to collect sales tax, call Larry Williams, Collection division, to register for special events at (202) 442-6800.

Who can I contact for more information?
For additional exempt organization questions, call James Lesane at (202) 442-6623 or email at [email protected].

Who is required to file an Employer Withholding (form FR-900Q) return?
Any individual or business that has withheld income tax for a District of Columbia (DC) resident is required to file the FR-900Q return.

Who is required to file an Employer Withholding Non-Payroll (form FR-900NP) return?
An entity that has withheld non-payroll income tax for a District of Columbia (DC) resident for any of the following payments must file:

• Pensions (including distributions from tax-favored retirement plans)
• Military retirement
• Gambling winnings
• Voluntary withholding on certain government payments
• Backup withholding

How do I file an Employer Withholding (form FR-900Q) return?
Please follow the step-by-step tutorial on how to file an employer withholding return: How to File a Withholding Wage Tax Return

Can I file a paper Employer Withholding (form FR-900Q) tax return?
For tax years 2023 and forward, the FR-900Q must be filed electronically.

The Office of Tax and Revenue (OTR) encourages filing all prior year returns electronically. For tax years 2022 and prior, OTR encourages filing the returns electronically.

What is the return due date for an Employer Withholding (form FR-900Q) return?
The returns are due on the last day of the month following the end of the quarter:

• 1st Quarter (January 1st-March 31st) - Due on April 30th
• 2nd Quarter (April 1st-June 30th) - Due on July 31st
• 3rd Quarter (July 1st-September 30th) - Due on October 30th
• 4th Quarter (October 1st-December 31st) - Due on January 31st of the following year

What is the return due date for an Employer Withholding Non-Payroll (form FR-900NP) return?
The FR-900NP is an annual return due on January 31st of each year. However, the payment is due on January 20th.

I have a household employee who resides in the District of Columbia. Am I required to withhold tax for the household employee?
Yes, you are required to register with OTR and withhold tax on the wages paid to the household employee.

Can I register for an employer withholding account using my Social Security Number (SSN) as my Tax Identification Number (TIN)?
No; an individual or entity withholding tax to the District of Columbia must obtain a Federal Employer Identification Number (FEIN/EIN) to withhold to the District.

Am I subject to penalties and interest for filing late?
Yes, if the return is filed with a balance due, you will be subject to a late file or payment penalty of 5% for each month late, with a maximum penalty of 25%

Who must file a Personal Property Tax Return (form FP-31)?
An individual or entity engaged in business with a location in the District of Columbia must file a Personal Property tax return and report the current value of the tangible personal property as of July 1st of each year.

What is the definition of tangible personal property?
Tangible personal property means tangible goods and chattels, including computer software, used, or held in any business, activity, or occupation, whether operated for profit or not.

What is the definition of "goods" and "chattel"?
OTR defines goods and chattels as tangible, movable, or immovable items except real estate and things (such as buildings) connected with real property.

How do I file a Personal Property Tax (form FP-31) return?
For tax years 2017 and forward, please file the return electronically via MyTax.DC.gov. Please use the following link to access step-by-step instructions on How to File a Personal Property Tax Return.

Can I file a paper Personal Property Tax (form FP-31) return?
For the tax year 2016 and prior, a paper return is required. Please use the following link to access Prior Year Personal Property Business Tax Forms.

For tax years 2017 and forward, please file the return electronically via MyTax.DC.gov.

When is the filing due date for Personal Property Tax (form FP-31) returns?
The filing due date is July 31st of each year.

When does the tax year begin and end?
“Tax year” means the 12 months beginning July 1st and ending June 30th of the following year.

Can I request an extension to file a Personal Property Tax (form FP-31) return?
Taxpayers must complete Form FP-129A to request a 3-month extension to file a Personal Property Tax return. The extension request is electronic only.

What is the tax rate for Personal Property Tax?
Personal Property Tax has a flat tax rate of 3.4% over $225,000. There is no tax due if the value of your personal property is $225,000 or less; however, you must still file the return.

I have multiple locations. Should I file a Personal Property Tax (form FP-31) return for each location?
No; only one return should be filed. A separate schedule should be completed for each location.

What is the Motor Vehicle Fuel Tax?
The Motor Vehicle Fuel Tax is a tax imposed on every importer of motor fuels, including gasoline, diesel fuel, benzol, benzene, naphtha, kerosene, heating oils, all liquified petroleum gases, and all combustible gases and liquids suitable for the generation of power for motor vehicles (DC Code Citation: Title 47, Chapter 23).

Who Must File and What Forms Must Be Filed?
Each importer engaged in selling or use of motor vehicle fuel in DC must file form FR-400M – Monthly Motor Fuel Tax Return. Persons who bring fuel for use, such as in excavating equipment on a DC construction site must also file form FR-400M, if the fuel is brought from outside DC and is not delivered by a DC licensed importer.

How and When to File Returns?
All returns must be filed electronically on MyTax.DC.gov. Any entity subject to the motor fuel tax must file and pay the FR-400M on or before the 25th day of the month following the period being reported. You must file a return even if you have no tax liability for the month being reported.

Where can I find more information?
Please visit OTR's Motor Vehicle Fuel Tax page.