A series of tax hikes now look to be on the way in the District, as lawmakers continue to advance a fiscal 2021 budget designed to better fund public housing repairs, homeless services and emergency measures tied to the pandemic.
The D.C. Council offered its preliminary approval to amendments to the spending plan on Tuesday, layering on a series of changes to the budget proposed by Mayor Muriel Bowser back in May. Perhaps most notably, the council is contemplating three tax increases, and rolled back two tax breaks, to replace some of the revenue lost as Covid-19 slowed the economy. The council meeting on the budget is ongoing, with a series of procedural votes left to go, but many amendments have already been finalized.
Chiefly, the council wants to continue to roll back a tax-incentive program for high-tech companies, virtually eliminating the Qualified High Technology Company tax credit program to raise another $28 million after lawmakers slashed it last year amid questions about its effectiveness.
The full council also agreed to delay a tax break for large corporations, delaying the sunset of “combined reporting” requirements for businesses with many subsidiaries located across different jurisdictions — a move that generates about $7.4 million.