Budget & Taxes (Sales Tax)

The Tax Sale Equity Amendment Act of 2026 updates the District of Columbia's tax sale laws to modernize procedures and strengthen protections for property owners. It expands the types of taxes that can be collected through tax sales and introduces a cost-of-living adjustment for attorney fees to ensure they keep pace with inflation. The bill also clarifies the rules for redeeming property after a tax sale and establishes a 90-day window for owners to claim their equity or make required payments. Additionally, it adjusts the amount of additional fees payable to the Recorder of Deeds and updates the list of expenses that can be claimed if a foreclosure judgment is reopened. These changes aim to create a fairer and more transparent process for both property owners and tax sale purchasers.

The Meals Tax Relief Amendment Act of 2026 reduces the sales tax on restaurant meals in Washington, D.C., to align it with the general sales tax rate. This change directly affects residents, visitors, and local dining establishments by lowering the tax from 10 percent to 6 percent through September 30, 2027, and then to 7 percent starting October 1, 2027. The bill achieves this by adjusting the specific tax rate applied to food and drinks prepared for immediate consumption while leaving other taxes unchanged. Once enacted, the legislation will take effect after approval by the Mayor and a mandatory 30-day congressional review period.

This bill proposes a 15% sales tax on disposable wipes, including pre-moistened tissues and cloths marketed as flushable, while exempting bidets from sales tax. The revenue generated from the tax would be directed to DC Water to fund capital improvements and repairs to the city's sewer infrastructure. The legislation defines nonwoven disposable products as items designed for personal hygiene that are commonly used for flushing but degrade slowly in sewer systems. By taxing these products and incentivizing bidet use, the bill aims to reduce clogs and backups that damage shared sewer infrastructure. The changes apply to all sales of qualifying wipes within the District of Columbia starting October 1, 2026.

This bill would remove the District of Columbia sales tax on HIV in-home tests, making these tests more affordable for District residents. Currently, these tests cost $40-$70, and the tax exemption would lower the effective price at the point of sale. The key provision amends the District’s tax code (section 47-2005) to add a specific exemption for HIV in-home tests. The change would apply once the bill is approved and the fiscal impact is included in the budget, as required by law.

The Fair Swipe Act of 2025 prohibits credit and debit card networks from charging interchange fees (swipe fees) on the sales tax and gratuity portions of restaurant and retail transactions in Washington, D.C. It directly affects local businesses, such as restaurants and retailers, which currently pay these fees on tax and tip amounts they do not retain. The bill requires merchants to submit documentation to receive credits for fees already paid, either at checkout or retroactively, and imposes a $1,000 civil penalty per violation for non-compliance. This policy change aims to help businesses retain more revenue by eliminating fees on tax and tip portions of card payments.