2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 18 - Income and Franchise Taxes › Subchapter VIII - Tax on Unincorporated Businesses › § 47–1808.14. Retailer property tax relief credit

§ 47–1808.14. Retailer property tax relief credit.
(a) For the purposes of this section, the term:
(1) "Qualified retail owned location" means a building or part of a building in the District that during the taxable year is:
(A) The primary place of the retail business of the qualified unincorporated business;
(B) Owned by the qualified unincorporated business; and
(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) "Qualified retail rental location" means a building or part of a building in the District that during the taxable year is:
(A) A retail establishment as defined in § 47-2001(m);
(B) The primary place of the retail business of the qualified unincorporated business;
(C) Leased by the qualified unincorporated business; and
(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.
(3) "Qualified unincorporated business" means a business that:
(A) Is engaged in making sales at retail and files a sales tax return pursuant to Chapter 20 of this title reflecting those sales;
(B) Has less than $2.5 million in federal gross receipts or sales; and
(C) Is current on all District tax filings and payments.
(b) For taxable years beginning after December 31, 2017, a qualified unincorporated business may claim a credit against the tax imposed by this chapter as follows:
(1) A tax credit equal to 10% of the total rent paid by the qualified unincorporated business for a qualified rental retail location during the taxable year not to exceed $5,000; or
(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:
(1) The qualified unincorporated business receives any tax credits towards payment of the real property tax for the qualified rental retail location or qualified owned retail location; or
(2) The qualified rental retail location or qualified owned retail location is exempt from real property tax.
(Oct. 30, 2018, D.C. Law 22-168, § 7252(c), 65 DCR 9388; Feb. 22, 2019, D.C. Law 22-234, § 5(b), 66 DCR 219.)
Applicability
Section 6 of D.C. Law 22-234 provided that the amendments made to this section by D.C. Law 22-234 shall apply as of October 1, 2018.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 5(b) of Fiscal Year 2019 Budget Support Clarification Congressional Review Emergency Amendment Act of 2018 (D.C. Act 22-552, Dec. 31, 2018, 66 DCR 251).
For temporary (90 days) amendment of this section, see § 5(b) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).
For temporary (90 days) amendment of this section, see § 2(b)(2) of Fiscal Year 2019 Budget Support Clarification Emergency Amendment Act of 2018 (D.C. Act 22-488, Oct. 22, 2018, 65 DCR12046).
For temporary (90 days) creation of this section, see § 7252(c) 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) creation of this section, see § 7252(c) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).
Temporary Legislation
For temporary (225 days) amendment of this section, see § 4(b) of Fiscal Year 2019 Budget Support Clarification Temporary Amendment Act of 2018 (D.C. Law 22-218, Feb. 22, 2019, 65 DCR 12977).