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May 2, 2023
Nyasha Smith, Secretary
Council of the District of Columbia
1350 Pennsylvania Ave, N.W.
Washington, DC 20004
Dear Secretary Smith:
Today, along with Councilmembers Trayon White, Zachary Parker, Matthew Frumin, Brooke Pinto,
Brianne K. Nadeau, and Robert C. White, Jr., I am introducing the “Helping Small Businesses Recover
and Thrive Amendment Act of 2023”. Please find enclosed a signed copy of the legislation.
Many of our small businesses are still recovering from the pandemic, and the District needs to provide
the necessary support to help them not only make ends meet, but thrive. This is a critical juncture for
the District’s economic recovery, and small businesses are drivers of growth, innovation, and safe and
vibrant neighborhoods. But many encounter frustrating bureaucratic red tape and unnecessary fees,
making their difficult jobs even harder. For example, bars and restaurants are on the hook for alcohol
licensing fees for employees that have moved on to other jobs, and many small businesses fail to receive
important notices about critical license renewals. They also regularly encounter widespread public
confusion about recent changes to the District’s minimum wage laws, and they’re nickeled and dimed by
transaction fees.
The Helping Small Businesses Recover and Thrive Amendment Act of 2023 fosters economic growth and
makes life easier for small business owners by:
• Increasing the tax credit available to qualifying businesses for a portion of rent or property taxes
paid and reducing the taxable value of the commercial property if it is rented or owned by the
qualifying business. The bill would also allow this real property tax credit to increase year-over-
year with the annual average Consumer Price Index. Existing law allows for a $5,000 credit to be
claimed by qualified businesses, and this would raise the credit to $10,000.
• Prohibiting sales tax from being imposed on service fees at restaurants, ensuring parity between
service fees and tips. Existing law allows for a tax on service charges in connection with serving
food or beverages (including alcohol) in cafes, bars, and similar establishments where food or
drink is served. 2
• Clarifying that, absent any contrary language, service fees are not considered sales for the
purposes of calculating rent in a commercial lease agreement. Existing commercial leases may
be unclear as to whether service fees are considered “sales” for the purposes of calculating rent.
• Allowing small businesses to receive written notice of license renewals by the Department of
Licensing and Consumer Protection (“DLCP”) to ensure ample notice of upcoming deadlines.
Existing law allows DLCP to provide either written or electronic methods of communication about
license renewals, but DLCP only provides notice through electronic means. This has caused
numerous small businesses to reach out to my office on the brink of losing their basic business
license because they missed or didn’t receive an email.
• Modifying requirements for bar manager licensure, allowing businesses to cover the credential
on an annual basis or three-year basis. This would allow bars and restaurants to avoid paying for
a license for a worker who might not otherwise remain with the business for the three-year
license period. Current law requires payment for the license at the time of the application and is
tied to the employee, not the business, leaving the business holding the bag if an employee
leaves before their license expires.
• Mandating the development and launch of a public awareness campaign to educate District
residents, visitors, and others who frequent food and drink establishments across the city about
upcoming changes to the tipped minimum wage. The current status of the tipped minimum
wage is confusing to consumers, given recent changes to the law.
• Allowing sexual harassment training to be administered virtually instead of in person for all
employees, including managers, like many other businesses, companies, and non-profit
organizations. Current law requires harassment prevention training every two years for all
employees of restaurant operators with at least one tipped employee, with the law allowing for
tipped employees and owners and operators of businesses to attend virtually via a real-time
video stream. However, managers must attend the training in person. The bill makes this
important training more accessible to industry staff.
• Prohibiting the charging of swipe fees on the sales tax portion of a credit or debit card
transaction. Current law allows credit and debit card companies to tack fees onto the entire
amount of a transaction. The bill would provide some relief to small businesses who accept credit
or debit cards at payment.
Please feel free to reach out to me or my Legislative Director, Antonio Nunes, with any questions or for
additional information.
Sincerely,
Councilmember Charles Allen, Ward 6
Chairperson, Committee on Transportation & the Environment
Vice Chair, Metropolitan Washington Council of Governments
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Councilmember Trayon White, Sr. Councilmember Charles Allen 2
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Councilmember Zachary Parker Councilmember Matthew Frumin 6
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Councilmember Brooke Pinto Councilmember Brianne K. Nadeau 10
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Councilmember Robert C. White, Jr. 14
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A BILL 18
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 23
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To amend Title II of the Service Improvement and Fiscal Year 2000 Budget Support Act of 1999 28
to allow managers of a business that employs an employee who receives a tipped wage to 29
receive sexual harassment training virtually from the Office of Human Rights; to amend 30
section 25-120 of the District of Columbia Official Code to allow ABCA licensees to pay 31
for a manager’s license on an annual basis; to amend the Tipped Wage Workers Fairness 32
Amendment Act of 2018 to require the Mayor to launch a public awareness campaign 33
regarding the elimination of the tipped minimum wage; to amend An Act To provide for 34
the payment and collection of wages in the District of Columbia to allow managers of a 35
business that employs an employee who receives a tipped wage to receive sexual 36
harassment training virtually; to amend An Act To codify a code of law for the District of 37
Columbia to provide a presumption in commercial lease agreements, absent any language 38
to the contrary, that service fees do not constitute sales for the purposes of calculating 39
rent; to amend Title 47 of the District of Columbia Official Code to increase the tax credit 40
for a portion of rent or property taxes paid for a qualifying corporation or qualifying 41
unincorporated business to a $10,000 maximum and to allow an increase year-over-year 42
with the annual Consumer Price Index, to clarify that additional service charges provided 43
with the sale of food or drink prepared for immediate consumption are not subject to 44
sales tax, and to allow businesses to receive notice of license renewals through the mail; 45
and to prohibit the charging of interchange fees on sales tax as part of credit and debit 46
card transactions. 47
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMB IA, That this 49
act may be cited as the “Helping Small Businesses Recover and Thrive Amendment Act of 50
2023”. 51
Sec. 2. Section 206a(b)(3) of Title II of the Service Improvement and Fiscal Year 2000 52
Budget Support Act of 1999, effective October 20, 1999 (D.C. Law 13-38; D.C. Official Code § 53
2-1411.05a(b)(3)), is amended by striking the phrase “attend in-person training” and inserting the 54
phrase “receive in-person or online training” in its place. 55
Sec. 3. Section 25-120(c) of the District of Columbia Official Code is amended to read as 56
follows: 57
“(c) A manager’s license shall be valid for 3 years or until surrendered, suspended, or 58
revoked; provided, that the licensee may pay the fee for the manager’s license in full at the time 59
of application or in part on an annual basis.”. 60
Sec. 4. The Tipped Wage Workers Fairness Amendment Act of 2018, effective 61
December 13, 2018 (D.C. Law 22-196; D.C. Official Code passim), is amended by adding a new 62
section 4a to read as follows: 63
“Sec. 4a. Public awareness campaign regarding the elimination of the tipped minimum 64
wage. 65
“(a) No later than 180 days after October 1, 2024, the Mayor shall launch a campaign to 66
raise awareness and educate the public about changes to the tipped minimum wage brought about 67
by the District of Columbia Tip Credit Elimination Act of 2022, effective February 23, 2023 68
(D.C. Law 24-281; D.C. Official Code § 32-1003). 69
“(b) The campaign in subsection (a) shall: 70
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“(1) Include the preparation of written and electronic materials that state in plain 71
language the changes brought about by the District of Columbia Tip Credit Elimination Act of 72
2022, effective February 23, 2023 (D.C. Law 24-281; D.C. Official Code § 32-1003); 73
“(2) Ensure that residents, businesses, tourists, and other interested parties are 74
aware of the changes brought about by the District of Columbia Tip Credit Elimination Act of 75
2022, effective February 23, 2023 (D.C. Law 24-281; D.C. Official Code § 32-1003), and what 76
consumers and businesses can expect in terms of implementation and any necessary changes to 77
existing practices and behaviors; and 78
“(3) Be conducted in English and any non-English language spoken by a limited 79
or no-English proficient population that constitutes 3% or 500 individuals, whichever is less, of 80
the population impacted, or expected to be impacted, of the changes brought about by the 81
District of Columbia Tip Credit Elimination Act of 2022, effective February 23, 2023 (D.C. Law 82
24-281; D.C. Official Code § 32-1003).”. 83
Sec. 5. Section 6a(b) of An Act To provide for the payment and collection of wages in 84
the District of Columbia, approved August 3, 1956 (70 Stat. 976; D.C. Official Code § 32-85
1306.01(b)), is amended by striking the phrase “attend in-person” and inserting the phrase 86
“attend either in-person or online” in its place. 87
Sec. 6. An Act To establish a code of law for the District of Columbia, approved March 88
3, 1901 (31 Stat. 1268; D.C. Official Code passim), is amended by adding a new section 505a to 89
read as follows: 90
“Sec. 505a. Service fees not included in definition of “sales” for commercial leases. 91
“(a) Absent any language to the contrary in a lease for a commercial tenancy, service fees 92
shall not constitute sales for the purposes of calculating percentage or rent for the property 93
leased. 94
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“(b) If there is any ambiguity in a commercial lease agreement concerning the inclusion 95
of service fees in calculating percentage or other rent for the property leased, there shall be a 96
presumption that service fees are not to be included in the calculation.”. 97
Sec. 7. Title 47 of the District of Columbia Official Code is amended as follows: 98
(a) Section 47-1807.14 is amended as follows: 99
(1) A new subsection (b-1) is added to read as follows: 100
“(b-1) For taxable years beginning after December 31, 2023, a qualified corporation may 101
claim a credit against the tax imposed by this chapter as follows: 102
“(1) A tax credit equal to 20% of the total rent paid by the corporation for a 103
qualified rental retail location during the taxable year, not to exceed $10,000; or 104
“(2) A tax credit equal to the total Class 2 real property taxes, pursuant to D.C. 105
Official Code § 47-811, paid by the qualified corporation for a qualified retail owned location 106
during the taxable year, not to exceed the lesser of the real property tax paid during the taxable 107
year or $10,000.”. 108
(2) A new subsection (c-1) is added to read as follows: 109
“(c-1) The credit claimed under this section in any one taxable year shall be increased as 110
determined by the Mayor on the basis of the annual Consumer Price Index for the Washington-111
Baltimore Metropolitan Statistical Area for all-urban consumers published by the Department of 112
Labor, or any successor index, as of the close of the 12-month period ending on September 30 of 113
such tax year.”. 114
(b) Section 47-1808.14 is amended as follows: 115
(1) A new subsection (b-1) is added to read as follows: 116
“(b-1) For taxable years beginning after December 31, 2023, a qualified unincorporated 117
business may claim a credit against the tax imposed by this chapter as follows: 118
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“(1) A tax credit equal to 20% of the total rent paid by the qualified 119
unincorporated business for a qualified rental retail location during the taxable year, not to 120
exceed $10,000; or 121
“(2) A tax credit equal to the total Class 2 real property taxes, pursuant to D.C. 122
Official Code § 47-811, paid by the qualified unincorporated business for a qualified retail 123
owned location during the taxable year, not to exceed the lesser of the real property tax paid 124
during the taxable year or $10,000.”. 125
(2) A new subsection (c-1) is added to read as follows: 126
“(c-1) The credit claimed under this section in any one taxable year shall be increased as 127
determined by the Mayor on the basis of the annual Consumer Price Index for the Washington-128
Baltimore Metropolitan Statistical Area for all-urban consumers published by the Department of 129
Labor, or any successor index, as of the close of the 12-month period ending on September 30 of 130
such tax year.”. 131
(c) Section 47-2001(n)(2) is amended by adding a new subparagraph (E-i) to read as 132
follows: 133
“(E-i) An additional charge for a service provided with the sale of food or 134
drink prepared for immediate consumption, as defined in subsection (g-1) of this section.”. 135
(d) Section 47-2851.10 is amended by adding a new subsection (a-1) to read as follows: 136
“(a-1) The Department shall make the option of notice by first-class mail available to all 137
licensees of their impending license expirations, renewals, and statements of renewal fees.”. 138
Sec. 8. Prohibition on charging of interchange fees on sales tax part of credit and debit 139
card transactions. 140
(a)(1) The amount of sales tax or fee that is calculated as a percentage of an electronic 141
payment transaction amount and listed separately on the payment invoice or other demand for 142
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payment shall be excluded from the amount on which an interchange fee is charged for that 143
electronic payment transaction. 144
(2) Such taxes include sales and use taxes under § 47-2002(a)(2)-(3). 145
(b) A payment card network shall either: 146
(1) Deduct the amount of any tax imposed from the calculation of interchange 147
fees specific to each form or type of electronic payment transaction at the time of settlement; or 148
(2) Rebate an amount of interchange fee proportionate to the amount attributable 149
to the tax or fee. 150
(c)(1) A deduction or rebate shall occur at the time of settlement when the merchant or 151
seller is able to capture and transmit tax or fee amounts relevant to the sale at the time of sale as 152
part of the transaction finalization. 153
(2) If a merchant or seller is unable to capture and transmit tax or fee amounts 154
relevant to the sale at the time of sale, then the payment card network shall accept proof of tax or 155
fee amounts collected on sales subject to an interchange fee upon the submission of sales data by 156
the merchant or seller and promptly credit the merchant or seller’s settlement account. 157
(d) A payment card network that violates the provisions of this section is subject to a civil 158
penalty of no more than one thousand dollars ($1,000) per violation, payable to the Office of Tax 159
and Revenue, and shall refund the surcharge to each merchant or seller. 160
(e) For the purposes of this section, the term: 161
(1) “Credit card” means a card or device, whether known as a credit card or by 162
any other name, issued under an arrangement pursuant to which a card issuer gives to a 163
cardholder the privilege of obtaining credit from the card issuer or other person in purchasing or 164
leasing property or services, obtaining loans, or otherwise. 165
(2) “Debit card”: 166
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(A) Means any instrument or device, whether known as a debit card or by 167
any other name, issued with or without a fee by an issuer for the use of the cardholder in 168
depositing, obtaining, or transferring funds; 169
(B) Includes a general-use prepaid card, as defined in 15 U.S.C. § 1693l-1; 170
and 171
(C) Does not include paper checks. 172
(3) “Electronic payment transaction” means a transaction which a person uses a 173
debit card, credit card, or other payment code or device issued or approved through a payment 174
card network to debit a deposit account or use a line of credit, whether authorization is based on 175
a signature, personal identification number, or other means. 176
(4) “Interchange fee” means a fee established, charged, or received by a payment 177
card network for the purpose of compensating the issuer for its involvement in an electronic 178
payment transaction. 179
(5) “Issuer” means a person issuing a credit or debit card, or the issuer’s agent. 180
(6) “Payment card network” means an entity that: 181
(A) Directly, or through licensed members, processors, or agents, provides 182
the proprietary services, infrastructure, and software that routes information and data to conduct 183
credit card or debit card transaction authorization, clearance, and settlement; and 184
(B) A merchant or seller uses in order to accept as a form of payment a 185
brand of credit card, debit card, or other device that may be used to carry out credit or debit 186
transactions. 187
(7) “Settlement” means the transfer of funds from a customer’s account to a seller 188
or merchant upon electronic submission of finalized sales transactions to the payment card 189
network. 190
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Sec. 9. Fiscal impact statement. 191
The Council adopts the fiscal impact statement in the committee report as the fiscal 192
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 193
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 194
Sec. 10. Effective date. 195
This act shall take effect following approval by the Mayor (or in the event of veto by the 196
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 197
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 198
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 199
Columbia Register. 200