Source: https://capitolhill.org/tag/small-retailer/
Timestamp: 2019-04-25 20:49:47+00:00

Document:
The Small Retailer Property Tax Relief Credit, which was announced by Councilmembers Allen and Mendelson in May, passed the Council and will go into effect this October. CHAMPS reached out to Councilmember Allen’s office for details on the tax credit, including how and when it will be implemented. DC’s Office of Tax and Revenue is also working on guidance and forms for the credit, and we will let CHAMPS members know when that guidance comes out.
The credit is calculated as equal to 10% of the rent paid during the taxable year OR equal to the Class 2 property taxes paid, up to a maximum credit of $5,000.
So when does it go into effect?
The tax credit is retroactive to January 1, 2018. So eligible retailers should be able to claim this credit on 2018 returns.
Who is eligible to receive this credit?
From my reading of the legislative language, a lot of businesses! Businesses that provide services but also have a retail component may be able to take advantage of this credit. Check with your accountant and we will keep you posted as guidance is forthcoming from OTR. The language of the credit and the DC Code definitions that it references are below.
And be the primary place of business.
What specific provisions of the DC Code can I read if I want more info, or want help falling asleep?
Here’s the link to the definition of “Retail sale” and “sale at retail” [scroll to (n)(1)] if you have made it this far in the blog and STILL are thirsting for more DC code.
Interested in the definition of “retail establishment” under § 47-2001(m)? Per DC Code: “Retail establishment” means any premises in which the business of selling tangible personal property is conducted or in or from which any retail sales are made.
This subtitle may be cited as the “Small Retailer Property Tax Relief Amendment Act of 2018”.
“47-1807.14. Retailer property tax relief credit.
“§ 47-1807.14. Retailer property tax relief credit.
“(C) Is current on all District tax filings and payments.
“(D) Classified, in whole or in part, as Class 2 Property, as defined in § 47-813 and has obtained a Certificate of Occupancy for commercial use.
“(C) Classified, in whole or in part, as Class 2 Property, as defined in § 47-813 and has obtained a Certificate of Occupancy for commercial use.
“(2) A tax credit equal to the total Class 2 real property taxes, pursuant to § 47-811, paid by the qualified corporation for a qualified retail owned location during the taxable year not to exceed the lesser of the real property tax paid during the taxable year or $5,000.
“(c) The credit claimed under this section in any one taxable year may exceed the qualified corporation’s tax liability, including any minimum tax due under § 47-1807.02(b), under this chapter for that taxable year and shall be refundable to the corporation claiming the credit.
“(d) This section shall not apply if the qualified corporation is exempt from or receives any tax credits towards its real property tax or the qualified rental retail location or qualified owned retail location is otherwise exempt from real property tax.
“47-1808.14. Retailer property tax relief credit.
“47-1808.14. Retailer property tax relief credit.”.
“(2) A tax credit equal to the total Class 2 real property taxes, pursuant to § 47-811, paid by the qualified unincorporated business for a qualified retail owned location during the taxable year not to exceed the lesser of the real property tax paid during the taxable year or $5,000.
“(c) The credit claimed under this section in any one taxable year may exceed the qualified unincorporated business’s tax liability, including any minimum tax due under § 47-1807.02(b), under this chapter for that taxable year and shall be refundable to the qualified unincorporated business claiming the credit.
“(d) This section shall not apply if the qualified unincorporated business is exempt from or receives any tax credits towards its real property tax or the qualified rental retail location or qualified owned retail location is otherwise exempt from real property tax.”.

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