COUNCIL OF THE DISTRICT OF COLUMBIA
The John A. Wilson Building
1350 Pennsylvania Avenue, nw
Washington, D.C. 20004
Statement of Introduction
Personal Property Tax Simplification Amendment Act of 2024
October 11, 2024
Today, I am proud to introduce the Personal Property Tax Simplification Amendment Act of 2024
along with Councilmembers Janeese Lewis George, Matthew Frumin, Charles Allen, and Anita
Bonds. This legislation would raise the current personal property tax exemption for businesses in the
District from $225,000 to $325,000, tie prospective annual increases to the Consumer Price Index,
and remove the requirement for filers under the threshold to file the personal property (FP-31) tax
return form.
The District of Columbia levies a personal property tax on all tangible business property, excluding
inventories. The rate is $3.40 per $100 of taxable value, with the first $225,000 exempt. Taxable
property includes machinery, equipment, and furniture, but excludes software unless integrated into
hardware. Nonprofits and specific businesses (such as solar systems and qualified supermarkets) are
exempt. Currently, all businesses, regardless of tax owed or exemptions, must file an FP-31 form,
detailing each asset's value and depreciation. This requirement creates significant administrative
burdens, particularly for smaller businesses with little to no taxable property. According to data
provided by the Tax Revision Commission, about 60,000 personal property tax returns were filed
from July 2022 to June 2023, but fewer than 1,500 filers had a tax liability. Additionally, the current
$225,000 exemption was established in 2008. If adjusted for inflation, the exemption value would be
$324,000 today.
Currently, twelve states do not tax businesses’ personal property at all: Delaware, Hawaii, Illinois,
Iowa, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, and
South Dakota. In addition, many other states are pursuing strategies to reduce or eliminate tangible
personal property taxes. Nationwide, nearly 100 bills have been introduced in 23 states to reduce
personal property taxes. Aligning with these efforts ensures that D.C. remains an attractive place for
small businesses, reducing administrative burdens and promoting economic vitality.
I look forward to continuing to work with my Council colleagues to advance these critical reforms,
ensuring that the District remains competitive for small businesses while alleviating unnecessary
administrative burdens.
Christina Henderson Committee Member
Councilmember, At-Large Hospital and Health Equity
Chairperson, Committee on Health Judiciary and Public Safety
Transportation and the Environment
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Councilmember Janeese Lewis George Councilmember Christina Henderson 2
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Councilmember Matthew Frumin Councilmember Charles Allen 6
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Councilmember Anita Bonds 10
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A BILL 13
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 18
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To amend Chapter 15 of Title 47 of the District of Columbia Official Code to increase the dollar 23
threshold for levying the personal property tax, and to exempt filers from including the 24
value of their tangible personal property on their tax returns if the value is below the 25
dollar threshold for taxation. 26
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 28
act may be cited as the “Personal Property Tax Simplification Amendment Act of 2024”. 29
Sec. 2. Chapter 15 of Title 47 of the District of Columbia Official Code is amended as 30
follows: 31
(a) D.C. Official Code § 47-1522(a) is amended to read as follows: 32
“(a) Each year the District shall levy a tax against every person on the tangible personal 33
property owned or held in trust in that person’s trade or business in the District. The rate of tax 34
shall be as follows: 35
“(1) For tax years ending before June 30, 2024, the rate of tax shall be $3.40 for 36
each $100 of value of the taxable personal property, in excess of $225,000 in value; 37 “(2) For the tax year beginning on July 1, 2025, the rate of tax shall be $3.40 for 38
each $100 of value of the taxable personal property, in excess of $325,000 in value; and 39
“(3) For each tax year thereafter, the rate of tax shall be $3.40 for each $100 of 40
value of the taxable personal property, in excess of $325,000 multiplied by the percentage that the 41
local Consumer Price Index as defined in § 47-1807.14(2), has risen during the calendar year in 42
which the tax year began, rounded to the nearest whole dollar.”. 43
(b) D.C. Official Code § 47-1523(a) is amended to read as follows: 44
“(a) The full and true value and the current value of tangible personal property, including 45
taxable leasehold improvements, having a taxable situs in the District shall be reported on the 46
return if, for the tax year, the value exceeds the threshold for taxation under § 47-1522. The full 47
and true value shall be the original costs of the tangible personal property in an arms-length 48
transaction, computed as of July 1st of the tax year. The current value of the tangible personal 49
property shall be the full and true value less a reasonable allowance for straight line depreciation 50
in accordance with rules promulgated by the Mayor and the provisions under subsections (b), c), 51
(d), and (e) of this section. Tangible personal property items with a useful life of one year or less 52
shall be reported at cost. No proration of value shall be permitted in anticipation of the 53
disposition of an item of tangible personal property. In no event shall the current value reported 54
be less than 25% of the original cost or exchange value of the tangible personal property, except 55
as permitted under subsection (b) of this section.”. 56
Sec. 3. Fiscal impact statement. 57
The Council adopts the fiscal impact statement in the committee report as the fiscal 58
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 59
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 60 Sec. 4. Effective date. 61
This act shall take effect following approval by the Mayor (or in the event of veto by the 62
Mayor, action by the Council to override the veto), and a 30-day period of congressional review 63
as provided in section 602c)(1) of the District of Columbia Home Rule Act, approved December 64
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02c)(1)). 65