2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 38 - Supermarket Tax Incentives › § 47–3802. Tax exemption

§ 47–3802. Tax exemption.
(a) The development of a qualified supermarket, qualified restaurant, or retail store shall be eligible for:
(1) A 10-year real property tax exemption under § 47-1002(23);
(2) A 10-year exemption from the license fee under § 47-2827(b);
(3) A 10-year personal property tax exemption as provided under § 47-1508(a)(9); and
(4) A sales and use tax exemption on the purchase of all building materials related to the development of a qualified supermarket, qualified restaurant, or retail store as provided under §§ 47-2005(28) and 47-2206.
(b) Notwithstanding the provisions of subsection (a) of this section, a qualified restaurant or retail store shall not be eligible for an exemption beginning on or after October 1, 2010 until the fiscal effect of any such new exemptions is included in an approved budget and financial plan.
(c)(1) Effective for applications filed on or after January 1, 2011, to be eligible for any exemption provided under subsection (a) of this section, an applicant shall file with the Mayor, in such manner and form as the Mayor may prescribe, an application requesting certification of eligibility for the exemption. As part of the application, and as a condition of certification, an applicant seeking an exemption for a qualified supermarket shall agree in writing to:
(A) Become authorized to accept Supplemental Nutrition Assistance Program ("SNAP") benefits as payment at the qualified supermarket, and to accept SNAP benefits for payment after such authorization;
(B) Apply to the Department of Health ("DOH") for approval to accept Special Supplemental Nutrition Program for Women, Infants, and Children ("WIC") benefits as payment at the qualified supermarket, and accept WIC benefits as payment at the qualified supermarket if approved by DOH to accept WIC benefits; and
(C) Conduct community listening sessions on the store's product offerings and operations at least once every 2 years.
(2) The Mayor shall, as nearly as practicable, complete review of requests for certification within 45 days after receipt.
(3) The Mayor shall certify to the Office of Tax and Revenue each taxpayer and property eligible for an exemption. The certification shall identify:
(A) The tax to which the certification applies;
(B) The specific taxpayer (including taxpayer identification number) and property (by square and lot or parcel or reservation number) eligible;
(C) The type or portion of the property that is eligible;
(D) The effective date of eligibility;
(E) The date on which eligibility is to terminate; and
(F) Such other information as the Office of Tax and Revenue shall require to administer the exemption.
(4) The Office of Tax and Revenue shall, as nearly as practicable, review and process certifications by the Mayor for real property tax exemptions under subsection (a)(1) of this section within 10 days after receipt.
(5) The Mayor shall notify the Office of Tax and Revenue if any taxpayer or property certified as eligible under paragraph (3) of this subsection becomes ineligible for an exemption under subsection (a) of this section. The notification shall identify:
(A) The type of tax to which the notice applies;
(B) The taxpayer (including taxpayer identification number) and property (by square and lot or parcel or reservation number);
(C) The type or portion of the property ineligible;
(D) The date on which the taxpayer or property became ineligible; and
(E) Such other information as the Office of Tax and Revenue shall require to administer the termination of the exemption.
(6) This subsection applies to the application requirements otherwise applicable to requests for exemption from the taxes listed in subsection (a) of this section, but shall not affect any other provision governing administration of the taxes.
(d) A qualified supermarket certified by the Mayor pursuant to this section shall be eligible for the tax exemptions provided by subsection (a)(1) through (3) of this section throughout the 10-year tax abatement period even if, during the 10-year period, the boundary of the eligible area in which the qualified supermarket was located at the time of certification changes and, as a result of the boundary change, the supermarket is no longer located in an eligible area.
(e) To remain eligible to continue to receive the tax benefits provided by this chapter, a qualified supermarket shall:
(1) Accept SNAP benefits for payment at the qualified supermarket;
(2) Accept WIC benefits for payment at the qualified supermarket, unless determined ineligible by DOH to accept payments by WIC benefits; and
(3) Conduct a community listening session on the store's product offerings and operations at least once every 2 years.
(f) The Mayor shall review the definition of the term "eligible area" at least once every 5 years to determine whether it continues to appropriately reflect the areas of the District where tax incentives for new supermarkets provide substantial benefits to District residents and neighborhoods.
(Sept. 29, 1988, D.C. Law 7-173, § 3, 35 DCR 5758; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; October 4, 2000, D.C. Law 13-166, § 2(b), 47 DCR 5821; Mar. 26, 2008, D.C. Law 17-138, § 703(a)(2), 55 DCR 1689; Sept. 24, 2010, D.C. Law 18-223, § 7006, 57 DCR 6242; Apr. 8, 2011, D.C. Law 18-353, § 205(b), 58 DCR 746; Dec. 24, 2013, D.C. Law 20-61, § 7156, 60 DCR 12472; Oct. 30, 2018, D.C. Law 22-168, § 2002, 65 DCR 9388; Nov. 13, 2021, D.C. Law 24-45, § 2022(d), 68 DCR 010163.)
Prior Codifications
1981 Ed., § 47-3802.
Section References
This section is referenced in § 2-1215.55.
Effect of Amendments
D.C. Law 13-166 rewrote this section, which previously read:
“The Mayor shall, within 180 days of September 29, 1988, submit to the Council for its approval, by resolution, a listing of all underserved areas ranked in order ranging from the most underserved to the least underserved. The Mayor may, from time to time, submit to the Council for its approval, by resolution, a listing of additional underserved areas ranked in order ranging from the most underserved to the least underserved.”
D.C. Law 17-138 inserted “, qualified restaurant, or retail store” following “qualified supermarket” in two places.
D.C. Law 18-223 designated the existing text as subsec. (a); and added subsec. (b).
D.C. Law 18-353 added subsec. (c).
The 2013 amendment by D.C. Law 20-61 substituted “a qualified restaurant or retail store” for “a qualified supermarket, qualified restaurant, or retail store” in (b).
Cross References
Real property exempt from taxation, enumerated, see § 47-1002.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 2002 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).
For temporary (90 days) amendment of this section, see § 2002 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).
For temporary (90 day) amendment of section, see §§ 2 and 3 of Supermarket Tax Exemption Clarification Emergency Amendment Act of 2010 (D.C. Act 18-517, August 3, 2010, 57 DCR 7981).
For temporary (90 day) amendment of section, see § 7006 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
For temporary (90 day) amendment of section, see § 2 of Supermarket Tax Exemption Clarification Congressional Review Emergency Act of 2010 (D.C. Act 18-572, October 20, 2010, 57 DCR 10088).
For temporary (90 day) amendment of section, see § 12 of Revised Fiscal Year 2012 Budget Support Technical Clarification Emergency Amendment Act of 2011 (D.C. Act 19-157, October 4, 2011, 58 DCR 8688).
For temporary amendment of (b), see § 107 of the Fiscal Year 2013 Budget Support Technical Clarification Emergency Amendment Act of 2012 (D.C. Act 19-482, October 12, 2012, 59 DCR 12478).
For temporary amendment of section, see § 107 of the Fiscal Year 2013 Budget Support Technical Clarification Congressional Review Emergency Amendment Act of 2012 (D.C. Act 19-604, January 14, 2013, 60 DCR 1045), applicable as of January 10, 2013.
For temporary (90 days) amendment of this section, see § 7156 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).
For temporary (90 days) amendment of this section, see § 7156 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).
Temporary Legislation
Sections 2 and 3 of D.C. Law 18-261, in subsec. (b), substituted “a qualified restaurant or retail store” for “a qualified supermarket, qualified restaurant, or retail store”.
Section 5(b) of D.C. Law 18-261 provided that the act shall expire after 225 days of its having taken effect.
Section 12 of D.C. Law 19-53, in subsec. (b), substituted “a qualified restaurant or retail store” for “a qualified supermarket, qualified restaurant, or retail store”.
Section 15(b) of D.C. Law 19-53 provided that the act shall expire after 225 days of its having taken effect.
Section 107 of D.C. Law 19-226 amended (b) by striking the phrase “a qualified supermarket, qualified restaurant, or retail store” and inserting the phrase “a qualified restaurant or retail store” in its place.
Section 402(b) of D.C. Law 19-226 provided that the act shall expire after 225 days of its having taken effect.
Short Title
Section 7151 of D.C. Law 20-61 provided that Subtitle O of Title VII of the act may be cited as the “Tax Clarification Amendment Act of 2013”.
Editor's Notes
Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.
Delegation of Authority
Delegation of authority pursuant to D.C. Law 7-173, the “Supermarket Tax Incentive Amendment Act of 1988”, see Mayor’s Order 89-84, April 24, 1989.