An Act to provide additional revenue for the District of Columbia, and for other purposes
PL 90-450 (H.R.16361), enacted 08/02/1968

612 
PUBLIC LAW 90-450-AUG. 2, 1968 
[82 STAT. 
(2) in applying the provisions of such section to the depart-
ments and agencies in the executive branch, the officers and 
employees of the Bureau of Research and Engineering of the 
Post Office Department and the officers and employees in the 
postal field service, except those in regional offices, shall not be 
taken into account. 
Approved August 2, 1968. 
Public Law 90-450 
August 2, 1968 
AN ACT 
[H.R. 16361] 
ipo provide additional revenue for the District of Columbia, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
D.c. Revenue 
United States of America in Congress assembled^ That this Act may 
Act o
f 1968. 
^^ ^-^g^ ^g ^YiQ "District of Columbia Revenue Act of 1968". 
81 Stat. 339. 
80 Stat. 858. 
61 Stat. 345. 
70 Stat. 71. 
70 Stat. 79. 
TITLE I—FEDERAL PAYMENT AUTHORIZATION 
SEC. 101. Section 1 of article VI of the District of Columbia Revenue 
Act of 1947 (D.C. Code, sec. 47-2501a) is amended (1) by striking out 
"June 30, 1968" and inserting in lieu thereof "June 30, 1969", and 
(2) 
by striking out "$70,000,000" and inserting lieu thereof 
"$90,000,000". 
TITLE II—AMENDMENTS TO T H E DISTRICT OF COLUM-
BIA INCOME AND FRANCHISE TAX ACT OF 1947 
SEC. 201. Section 3 of title VI of the District of Columbia Income 
and Franchise Tax Act of 1947 (D.C. Code, sec. 47-1567b(a)) is 
amended to read as follows: 
"SEC. 3. IMPOSITION AND RATES or TAX.—In the case of a taxable 
year beginning after December 31,1967, there is hereby imposed on the 
taxable income of every resident a tax determined in accordance with 
the following table: 
"If the taxable income is: 
The tax is: 
Not over $1,000 
2% of the taxable income. 
Over $1,000 but not over $3,000 
$20 plus 3% of excess over $1,000. 
Over $3,000 but not over $.5,000 
$80 plus 4% of excess over $3,000. 
Over $5,000 but not over $10,000 
$160 plus 5% of excess over $5,000. 
Over $10,000 
$410 plus 6% of excess over $10,000." 
SEC. 202. (a) Section 2 of title VII of such Act (D.C. Code, sec. 
47-157la) is amended by striking out "5 per centum" and inserting in 
lieu thereof "6 per centum". 
(b) Section 3 of title VIII of such Act (D.C. Code, sec. 47-1574b) 
is amended by striking out "5 per centum" and inserting in lieu thereof 
"6 per centum". 
SEC. 203. (a) Section 7(a) (4) of title X I I of such Act (D.C. Code, 
sec. 47-1586f (a) (4)) is amended to read as follows: 
" (4) EMPLOYERS.—Every employer required to deduct and withhold 
tax under this article shall make a return of, and pay to the District, 
the tax required to be withheld under this article for such periods and 
at such times as the District of Columbia Council may prescribe." 
(b) Section 1 (b) of title X I I I of such Act (D.C. Code, sec. 47-1589 
(b)) is amended to read as follows: 
"(b) FAILURE TO FILE EMPLOYER'S RETURN.—In the case of any 
employer— 
" (1) who pursuant to this article is required to withhold taxes 
on wages, make a return of such taxes, and pay to the District the 
82 STAT. ] 
PUBLIC LAW 90-450-ATIG. 2, 1968 
613 
taxes required to be withheld pursuant to this article, and 
"(2) who fails to withhold such taxes, make such return, or pay 
to the District the taxes required to be withheld pursuant to this 
article, 
there shall be imposed on such employer a civil penalty (in addition to 
'"' ^^"^ ^ 
any criminal penalty provided for in this article) of 5 per centum of 
the amount required to be shown as tax on such return if the failure is 
for not more than one month, with an additional 5 per centum for each 
additional month or fraction thereof during which such failure con-
tinues, not exceeding 25 per centum in the aggregate." 
SEC. 204. (a) The amendment of any provision of the District of 
Columbia Income and Franchise Tax Act of 1947 shall not affect any 
"c^^c'ode^V-
act done or any right accruing or accrued, or any suit or proceeding had 1551 note° ^ 
or commenced in any civil cause before such amendment; but all rights 
and liabilities under such Act shall continue, and may be enforced 
in the same manner and to the same extent, as if such amendment had 
not been made. 
(b) All offenses committed, and all penalties incurred, under any 
provision of law hereby amended, may be prosecuted and punished in 
the same manner and with the same effect as if this title had not been 
enacted. 
SEC. 205. The amendments made by sections 201 and 202 of this title 
Effective dates. 
shall be applicable to taxable years beginning after December 31,1967. 
The amendments made by section 203 of this title shall take effect on the 
date of enactment of this Act. 
TITLE III—AMENDMENTS TO T H E DISTRICT OF COLUM-
BIA SALES TAX ACT AND T H E DISTRICT OF COLUMBIA 
USE TAX ACT 
SEC. 301. Section 107 of the District of Columbia Sales Tax Act f.^pZ^^.f-
(D.C. Code, sec. 47-2601, par. 7) is amended by striking out ": Pro- 
68 sm. 117. 
vided, however, That the word 'food' shall not include spiritous or malt 
liquors and beer" and inserting after the period at the end of such sec-
tion the following new sentence: "The word 'food' shall not include 
spiritous or malt liquors, beer, or wines." 
SEC. 302. Subsection (a) of section 114 of the District of Columbia ..^g^e a^/reTau*'' 
Sales Tax Act (D.C. Code, sec. 47-2601, par 14(a)) is amended by 
63 stat'^n^a. 
adding at the end thereof the following new paragraph: 
"(7) (A) The sale of or charges to subscribers for local telephone 
service. The inclusion of such sales and charges in the definition of the 
terms 'retail sale' and 'sale at retail' shall not authorize any tax to be 
imposed under this title on so much of any amount paid for the instal-
lation of any instrument, wire, pole, switchboard, apparatus, or equip-
ment as is properly attributable to such installation. 
"(B) The term'local telephone service'means— 
"Local teie-
"(i) the access to a kxial telephone system, and the privilege of ^^°^^ service." 
telephonic quality communication with substantially^ all persons 
having telephone or radio telephone stations constituting a part of 
such local telephone system, and 
"(ii) any facility or service provided in connection with a serv-
ice described in clause (i) of this subparagraph. 
The term 'local telephone service' does not include any service which is 
a 'toll telephone service' or a 'private communication service' as defined 
in subparagraphs (C) and (D). 
"(C) The term 'toll telephone service' means— 
«^VJ^°" ,*,^^^P**°"^ 
"(i) a telephonic quality communication for which (a) there is 
a toll charge which varies m amount with the distance and elapsed 
service.' 
614 
PUBLIC LAW 90-450-AUG. 2, 1968 
[82 STAT. 
"Private com-
munication serv-
Exemptions. 
63 Stat. 114. 
Exemptions. 
transmission time of each individual communication and (b) the 
charge is paid within the United States, and 
" (ii) a service which entitles the subscriber, upon payment of a 
periodic charge (determined as a flat amount or upon the basis of 
total elapsed transmission time), to the privilege of an unlimited 
number of telephonic communications to or from all or a substan-
tial portion of the persons having telephone or radio telephone sta-
tions in a specified area which is outside the local telephone system 
area in which the station provided with this service is located. 
"(D) The term 'private communication service' means— 
" (i) the communication service furnished to a subscriber which 
entitles the subscriber— 
"(a) to exclusive or priority use of any communication 
channel or groups of channels, or 
"(b) to the use of an intercommunication system for the 
subscriber's stations, 
regardless of whether such channel, groups of channels, or interT 
communication system may be connected through switching with a 
service described in subparagraph (B) or (C), 
"(ii) switching capacity, extension lines and stations, or other 
associated services which are provided in connection with, and are 
necessary or unique to the use of, channels, or systems described in 
clause (i) of this subparagraph, and 
"(iii) the channel mileage which connects a telephone station 
located outside a local telephone system area with a central oiRce in 
such local telephone system, 
except that such term does not include any communication service 
unless a separate charge is made for such service." 
SEC. 303. Section 114(b) (2) of the District of Columbia Sales Tax 
Act (D.C. Code, sec. 47-2601, par. 14(b)(2)) is amended to read as 
follows: 
"(2) (A) Sales of transportation and communication services other 
than sales of local telephone service. 
"(B) Sales of local telephone service rendered by means of a coin-
operated telephone available to the public; except that where such coin-
operated telephone service is furnished for a guaranteed amount, the 
amounts paid under such guarantee plus any fixed monthly or other 
periodic charge shall be subject to the tax imposed on local telephone 
service by this title." 
SEC. 304. Section 125 of the District of Columbia Sales Tax Act 
(D.C. Code, sec. 47-2602) is amended to read as follows: 
"SEC. 125. A tax is imposed upon all vendors for the privilege of 
selling at retail certain tangible personal property and for the privilege 
of selling certain selecteH services (defined as 'sales at retail' in this 
title). The rate of such tax shall be 4 per centum of the vendor's gross 
receipts from the sale of such tangible personal property and services, 
except that the rate of tax with respect to sales or charges for any 
room or rooms, lodgings, or accommodations, furnished to transients 
by any hotel, inn, tourist camp, tourist cabin, or any other place in 
which rooms, lodgings, or accommodations are regularly furnished to 
transients, shall be 5 per centum of the gross receipts from such sales 
or charges, and the rate of tax with respect to sales of food for human 
consumption off the premises where such food is sold shall be 1 per 
centum of the gross receipts from such sales." 
SEC. 305. (a) Section 128 of the District of Columbia Sales Tax Act 
(D.C. Code, sec. 47-2605) is amended— 
(1) by adding after paragraph (c) the following new para-
graph : 
"(d) Sales of materials and services to the printing clerks of the 
82 STAT. ] 
PUBLIC LAW 90-450-AUG. 2, 1968 
615 
majority and minority rooms of the House of Representatives for use 
in the operation of such rooms, and sales of materials and services made 
by such clerks in connection with the operation of such rooHOS."; 
(2) by amending paragraph (i) to read as follows: 
"(i) Sales of food, beverages, and other goods made to any person 
for use in the operation of the majority and minority cloakrooms of 
the House of Representatives and sales of such food, beverages, and 
other goods made by such person in connection with the operation of 
such cloakrooms."; and 
(3) by redesignating paragraph (r) as paragraph (q). 
^i s*^' 276; 
(b) Paragraph (d) of such section 128, added by paragraph (1) 
D.c^.^codt 47-
of subsection (a) of this section, shall apply with respect to sales of 2605. 
materials and services made on or after January 1, 1961. 
Effective date. 
SEC. 306. Section 201(b) (2) of the District of Columbia Use Tax 
J^R^^^J ^^^^ „ 
Act (D.C. Code, sec. 47-2701, par. 1(b)(2)) is amended to read as exemption.^^ ^' 
f o l l o w s : 
63 Stat. 125. 
"(2) Sales of transportation and communication services other than 
sales of local telephone service." 
SEC. 307. The last sentence of section 212 of the District of Columbia 
K^^^-
Use Tax Act (D.C. Code, sec. 47-2702) is amended to read as follows: 
"The rate of the tax imposed by this section shall be 4 per centum of the 
sales price of the tangible personal property or services rendered or 
sold, except that the rate of tax with respect to sales of food for human 
consumption off the premises where such food is sold shall be 1 per 
centum of the sales price of such sales." 
SEC. 308. Except as provided in section 305(b), the amendments 
Effective date. 
made by this title shall take effect on the first day of the first month 
which begins on or after the thirtieth day after the date of enactment 
of this Act. The imposition of sales tax on local telephone service shall 
be applicable to the sales price or charge made by a vendor for local 
telephone service as stated on the bills rendered to the purchaser by the 
vendor on and after such effective date. 
TITLE IV—GENERAL PROVISIONS 
SEC. 401. No funds appropriated for the government of the District 
of Columbia may be used— 
(1) to provide transportation for students enrolled in the pub-
lic schools of the District of Columbia if the transportation is pro-
vided solely to change the racial balance in any public school in 
the District of Columbia, or 
(2) for the cost of education (including the cost of transporta-
tion) of any individual in an elementary or secondary school 
located outside the District of Columbia, except (A) any handi-
capped individual for whom education facilities do not exist in 
the public school system of the District of Columbia and (B) any 
individual under the care, custody, or guardianship of the Dis-
trict of Columbia placed in a foster home or in an institution 
located outside the District of Columbia. 
SEC. 402. No funds appropriated for the government of the District 
of Columbia may be used to furnish materials or services to promote 
or further any demonstration in the District of Columbia undertaken 
for the purpose of influencing legislation or other governmental actions 
of the United States Government or the government of the District 
of Columbia, except that nothing in this section shall preclude the 
government of the District Columbia from taking such emergency 
action as the Commissioner of the District of Columbia determines 
necessary for the preservation of the health, safety, or welfare of 
any person within the District of Columbia. 
9fi-finn n - fio - i9
616 
PUBLIC LAW 90-451-AUG. 3, 1968 
[82 STAT. 
D.C. Council. 
Licensing 
authority. 
48 Stat. 322. 
License appli-
cants, citizen-
ship. 
48 Stat. 328. 
SEC. 403. The first sentence of the second paragraph of section 7 of 
the District of Columbia Alcoholic Beverage Control Act (D.C. Code, 
sec. 25-107) is amended to read as follows: "The District of Columbia 
Council shall have authority to make rules and regulations for the 
issuance, transfer, and revocation of licenses; to facilitate and insure 
the collection of taxes; to govern the operation of the business of 
licensees, with full power and authority to prescribe the terms and 
conditions under which alcoholic beverages may be sold by each class 
of licensees; to forbid the issuance of licenses for manufacture, sale, 
or storage of alcoholic beverages in such localities in, and such sections 
and portions of, the District of Columbia as the Comicil may deem 
proper in the public interest; to limit the number of licenses of each 
class to be issued in the District of Columbia and to limit the number 
of licenses of each class in any locality in, or sections or portions of, the 
District of Columbia as the Council may deem proper in the public 
interest; to forbid the issuance of licenses for businesses conducted on 
such premises as the Council, in the public interest, may deem inap-
propriate ; to forbid the issuance of any class or classes of licenses for 
businesses established subsequent to the date of enactment of this Act 
near or around schools, colleges, universities, churches, or public in-
stitutions; to prescribe the hours during which alcoholic beverages 
may be sold; and to prohibit the sale of any or all alcoholic beverages 
on such days as the Council determines necessary in the public inter-
est." 
SEC. 404. Section 14(a) of the District of Columbia Alcoholic Bev-
erage Control Act (D.C. Code, sec. 25-115(a)) is amended— 
(1) by striking out in paragraph 2 "a citizen of the United 
otates, ; 
(2) by adding immediately after paragraph 2 the following 
new paragraph: 
"3. That (A) each individual, each member of a partnership, and 
each principal officer of a corporation (other than a club) is a citizen 
of the United States, and (B) a majority of the principal officers of a 
club are citizens of the United States."; and 
(3) by redesignating paragraphs 3, 4, and 5 and all references 
thereto, as paragraphs 4, 5, and 6, respectively. 
Approved August 2, 1968. 
Public Law 90-451 
August 3,1968 
AN ACT 
[s. 2445] 
rY^y amend part I of the Federal Power Act to clarify the manner in which the 
licensing authority of the Commission and the right of the United States to 
take over a project or projects upon or after the expiration of any license shall 
be exercised. 
Federal Power 
Commission. 
Licensing 
authori ty. 
49 Stat. 842. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 7 of 
the Federal Power Act, as amended (16 U.S.C. 800), is amended by 
adding thereto the following new subsection: 
"(c) Whenever, after notice and opportunity for hearing, the Com-
mission determines that the United States should exercise its right 
upon or after the expiration of any license to take over any project 
or projects for public purposes, the Commission shall not issue a new 
license to the original licensee or to a new licensee but shall submit 
its recommendation to Congress together with such information as it 
may consider appropriate."