Today marks my 15th year at the Tax Foundation. Looking back, the world was different when I started: people still had dialup internet, Bill Clinton was president, and the Tax Foundation was just seven people in a small...
- The Tax Policy Blog
- D.C. Approves Tax Hikes
D.C. Approves Tax Hikes
The District of Columbia Council has approved a 2010 budget designed to close their $666 million budget shortfall. Tax increases within the budget include:
- Raising the sales tax from 5.75 percent to 6 percent for three years. At 6 percent, D.C. would share the 13th highest sales tax rate rank among states.
- Raising the gasoline tax from 20 cents per gallon to 23.5 cents per gallon. D.C. would share Maryland's gas tax rate-ranked at 26th highest among states.
- Raising cigarette taxes from $2 a pack to $2.50 a pack—a penny less than Massachusetts cigarette tax that ranks 6th highest among states.
(Tax rate rankings for all states can be seen in the Tax Foundation's mid-year update of 2009 Facts & Figures: How Does Your State Compare? )
Combined reporting was approved as a way to force businesses to pay corporate income taxes on profits reported for subsidiaries not inside Washington. Also, indexing on homestead deductions for property taxes would be delayed until 2013.
Get Email Updates from the Tax Foundation
We will never sell or share your information with third parties.
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.