Opinion ID: 1918302
Heading Depth: 3
Heading Rank: 1

Heading: School Street

Text: School Street is a District of Columbia limited partnership that meets the statutory definition of an unincorporated business under D.C.Code § 47-1808.1. [8] As such, it is subject to the District's franchise tax, although it serves only as a pass-through entity under the federal tax scheme. The partnership is primarily owned by non-residents of the District; however, it derives all of its revenue from activity within the District, specifically through operation of real estate located at 500 E Street, SW. Between 1982 and 1991, School Street suffered net operating losses totaling $6,079,396, which were reflected in its federal informational returns. In 1992, School Street generated positive income, and claimed a carry-forward deduction of its prior losses against this income pursuant to its reading of § 47-1803.3(a)(14). In 1994, the District of Columbia Department of Finance and Revenue (now the Office of Tax and Revenue or OTR [9] ) notified School Street that it was disallowing the NOL deduction. School Street petitioned for review in the Tax Division of the Superior Court. Both parties argued for summary judgment in their favor based solely on the legal question of statutory interpretation. The court accepted the District's argument that § 47-1803.3(a)(14) is not applicable to such unincorporated businesses because of what the District reads as limiting references in the subsection to the federal tax law. School Street appeals from that ruling.