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Office of Tax and Revenue

Currently, there is a text message scam that is occurring in the District of Columbia. Taxpayers are receiving text messages that claim to be from the DC Office of Tax and Revenue asking them to update their banking information. If you get a text message stating it is from DC's Office of Tax and Revenue, please do not reply or click any link and delete it from your device. We will never send unsolicited text messages asking for personal information. If you have any questions, you can contact our Customer Service office at (202) 727-4829 or visit MyTax DC.

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OTR Tax Notice 2023-03: Sales Tax on Additional Mandatory Charges as a Result of Initiative 82

Monday, March 27, 2023

Initiative 82, passed by District voters in November 2022, eliminated the tipped minimum wage for servers, bartenders and other tipped workers which was $5.35. (See, Initiative Measure No. 82 - District of Columbia Tip Credit Elimination Act of 2021, D.C. Law 24-0281).  To reach the DC minimum wage, currently $16.10, the minimum wage difference was made up with gratuities, whether voluntarily given by consumers or required to be paid by consumers. This gratuity is otherwise known as the “tip credit.”  Beginning on May 1, 2023, employers are required to supplement workers’ pay if the worker did not earn enough in tips to reach the DC minimum wage. The tipped minimum wage will be phased out by 2027 to be replaced with one universal minimum wage.