The hospitality industry accounts for 50% of the District’s sales tax revenue, and the coronavirus pandemic’s impact on hotels, restaurants, bars and other hospitality-related industries has been significant for D.C.
The District Office of the Chief Financial Officer reports hotel tax collections in August were about 10% of their prior year level, and restaurant tax collections were down 33% from last August.
Those numbers derailed the fiscal 2020 revenue forecast, although it was expected.
The Office of Revenue Analysis originally estimated sales tax revenue for fiscal 2020 would be $1.7 billion, 6.6% over a strong fiscal 2019. In February, that forecast was reduced only modestly, but the city now expects 2020 sales tax collections will be $1.2 billion, $500 million less than the original forecast.
Click here to read the rest of the article written by Jeff Clabaugh over at WTOP
