2023 District of Columbia Code › Title 1 - Government Organization › Chapter 3 - Specified Governmental Authority › Subchapter I - Additional Governmental Powers and Responsibilities › Part I - Chief Financial Officer Additional Duties › § 1–301.157. Tax preference review

§ 1–301.157. Tax preference review.
(a) The CFO shall review all locally adopted tax expenditures on a 5-year cycle and publish annually a report complying with the requirements of this section.
(b) By October 1, 2015, and by October 1 of every year thereafter, the CFO shall submit for publication in the District of Columbia Register a report for on-cycle tax preferences that complies with the requirements of this section.
(d) An on-cycle individual preference shall be analyzed and reported in the following manner:
(1) An individual preference shall be analyzed and reported in groupings of similarly purposed preferences, with the report focusing on collective effects or trends that emerge.
(2) The report shall include the stated purpose of the of tax preferences within the grouping, if clarified in the authorizing legislation.
(3) The report shall include the amount of lost revenue due to the tax preferences within the grouping.
(4) The report shall include an assessment of the general effects on the District resulting from the preferences.
(5) The report on groupings of individual preferences shall include recommendations on how to improve similar preferences in the future.
(6) For groupings of individual tax preferences with an economic development purpose, the analysis shall consider the economic impact of the preferences, and where sufficient data are available, take into account factors including:
(A) Whether the economic impact of the tax preferences would have been expected without the preferences;
(B) The extent to which the economic impact of the tax preferences was offset by economic losses elsewhere;
(C) The average economic impact for a level of direct expenditures equal to the cost of the tax preferences;
(D) The indirect economic impact of the tax preferences;
(E) The number of jobs created by the preference;
(F) The wages of the jobs created;
(G) The percentage of jobs filled by District residents; and
(H) Whether any terms of the tax preferences have been or are being satisfied.
(e) Except as provided in subsection (f) of this section, on-cycle categorical preferences shall receive a full review that, where sufficient data are available, includes:
(1) The purpose of the tax preference, if clarified in the authorizing legislation;
(2) The tax preference’s cost in terms of lost revenue;
(3) An assessment of whether the tax preference is meeting its goals;
(4) An assessment of whether the tax preference is achieving other goals;
(5) Recommendations for improving the effectiveness of the tax preference;
(6) Recommendations for whether the tax preference should be modified, discontinued, or remain in its existent state; and
(7) For tax preferences with an economic development purpose, an analysis that measures the economic impact of the preference, including:
(A) Whether the economic impact of the tax preference would have been expected without the preference;
(B) The extent to which the economic impact of the tax preference was offset by economic losses elsewhere;
(C) The average economic impact for a level of direct expenditures equal to the cost of the tax preference; and
(D) The indirect economic impact effect of the tax preference.
(f) For on-cycle categorical tax preferences that the CFO determines do not merit a full review, the CFO shall instead perform a summary review. In determining which tax preferences are appropriate for a summary review, the CFO shall consider factors including, at a minimum:
(1) The revenue lost due to the tax preference and the number of potential or actual claimants;
(2) Whether the revenue lost due to the preference has increased or decreased since the preference was last reviewed;
(3) Whether the preference has been included in legislative or administrative proposals to modify or repeal; and
(4) Whether the preference is required by Chapter 2 of this title [§  2-201.01 et seq.].
(g) A report on a categorical preference designated for summary review shall include:
(1) A narrative summary of the preference, including its purpose;
(2) The source and year of statutory authorization;
(3) The fiscal impact of the preference; and
(4) A description of the beneficiaries of the tax preference.
(h) All District agencies, offices, and instrumentalities shall cooperate with the CFO and shall provide any records, information, data, and data analysis needed to complete the reviews and reports required by this section.
(Feb. 26, 2015, D.C. Law 20-155, § 7133, 61 DCR 9990.)
Emergency Legislation
For temporary (90 days) addition of section, see § 7143 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).
For temporary (90 days) addition of section, see § 7133 of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).
For temporary (90 days) addition of section, see § 7133 of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).