What would YOUR BUSINESS lose if the Council’s budget is not implemented?

The Council passed the Budget Support Act (BSA) twice, as required by law: by a vote of 13-0 on May 28 and by a vote of 12-1 on June 24.  That legislation included a progressive package of tax reforms for both individuals and businesses. Subsequently, the Mayor vetoed an emergency version of the BSA.  On Monday, July 14, the Council will consider an override of the Mayor's veto, which would require the votes of at least nine Councilmembers.

If the veto is overriden, your business will receive the tax savings outlined below. If the veto is not overriden, the tax savings outlined in the chart below will never occur.

How much can your business expect to save each year, once the tax cuts are fully implemented?  The chart below will show you.

* The Budget Support Act as passed by the Council will lead to a 17% reduction in the District’s business franchise tax - from 9.975% to 8.25%.  On January 1, 2015 the rate will drop to 9.4%. Beginning January 1, 2016, additional decreases in the rate (in 0.2% to 0.25% increments) will be triggered based on revenue growth realized after each fiscal year’s budget is approved. The projected annual franchise tax savings shown in the chart above are based upon a fully implemented decrease in the business franchise tax rate to 8.25%, which is anticipated in the next 3 to 5 years.