Source: https://development.code.dccouncil.us/dc/council/code/sections/47-2507.html
Timestamp: 2019-04-23 04:22:05+00:00

Document:
D.C. Law Library - § 47–2507. Transitional rules for taxing financial institutions.
↪ § 47–2507. Transitional rules for taxing financial institutions.
(1) For financial institutions with a federal taxable year ending on a date other than June 30th, a short period return must be filed and the tax computed in accordance with § 47-2501 for the period from July 1, 1981, to the end of the taxpayer’s tax year for federal income tax purposes (federal tax year).
(2) The short period return required in paragraph (1) of this subsection shall be filed on or before the last day of the month following the close of the taxpayer’s federal tax year.
(C) If the taxpayer’s short period is more than 9 months, a second estimated tax payment is due March 31, 1982, in an amount computed in subparagraph (A) of this paragraph.
(1)(A) The first transition year is a financial institution’s first full taxable year for federal income tax purposes beginning on or after July 1, 1981.
(B) A taxable year for purposes of this subsection is a 12-month period.
(iii) For the 3rd transition year, the franchise tax plus 33 1/3% of the difference between the total of the franchise tax plus the personal property tax and the gross earnings tax computed for the same taxable year; provided, that the computed gross earnings tax is greater than the total of the franchise tax plus the personal property tax.
(B) In no event shall the total tax levied be less than the franchise tax plus the personal property tax. Any gross earnings tax paid or accrued under the provisions of this section shall not be allowed as a deduction in arriving at the franchise tax liability.
(3)(A) During the 3-year transition period described in paragraph (2) of this subsection, every financial institution shall make and file a declaration of estimated tax at such time or times and under such conditions, and shall make payments of such tax during its taxable year in such amounts and under such conditions as prescribed in § 47-1812.14 and regulations relating thereto.
(ii) The cumulative amount of installments paid for gross earning taxes for the taxable year plus the cumulative amount of installments paid for franchise taxes for the taxable year on or before the date prescribed for payment pursuant to law or regulation.
(C) After the 3-year transition period, the gross earnings tax provided by § 47-2501 shall not apply to financial institutions and each financial institution shall be subject to the franchise tax as provided by Chapter 18 of this title.
(c) Gross earnings tax return filing. — The gross earnings required for each of the 3 transition years shall be filed with the Mayor on or before the 15th day of March in each year; except, that such returns, if made on the basis of a fiscal year, shall be filed on or before the 15th day of the 3rd month following the close of such fiscal year. During the transition period referred to in subsection (b), there shall be excluded from the gross earnings tax and franchise tax computation all earnings resulting from any IBF time deposit or IBF loan.
(d) Filing extension. — The Mayor may grant a reasonable extension of time for filing the returns required by subsection (c) of this section whenever in his judgment good cause exists therefor, and he shall keep a record of every such extension. Except in the case of a taxpayer who is not within the continental limits of the United States, no extension shall be granted for more than 6 months, and in no case shall such extension be granted for more than 1 year.
This section is referenced in § 47-1807.02, § 47-1812.14, and § 47-2515.
Income and franchise taxes, declaration of estimated tax by corporations, financial institutions, and unincorporated businesses, see § 47-1812.14.
Tax on corporations and financial institutions, same—levy and rates, subject to transition rules, see § 47-1807.02.

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