Tax and Revenue Commission Establishment Amendment Act of 2025

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Councilmember Charles Allen
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Councilmember Brianne K. Nadeau
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Councilmember Zachary Parker
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Councilmember Janeese Lewis George

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A BILL 6
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 10
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To amend Title 47 of the District of Columbia Official Code to establish a permanent Tax and 15
Revenue Commission. 16
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 18
act may be cited as the “Tax and Revenue Commission Establishment Amendment Act of 2025”. 19
Sec. 2. Subchapter VI of Chapter 4 of Title 47 of the District of Columbia Official Code 20
is amended as follows: 21
(a) The table of contents is amended to read as follows: 22
Ҥ 47-461. Council findings [Repealed]. 23
Ҥ47-462. Tax and Revenue Revision Commission РEstablished. 24
“§ 47–463. Tax and Revenue Revision Commission — Selection of director. 25
“§ 47–464. Tax Revision Commission — Authority. 26
Ҥ 47-465. Tax Revision Commission РComprehensive update cycles. 27

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““§ 47-466. Tax and Revenue Revision Commission – Yearly report on 28
recommendations and technical updates.”. 29
(b) § 47-461 is repealed. 30
(c) § 47-462 is amended to read as follows: 31
Ҥ47-462. Tax and Revenue Revision Commission РEstablished. 32
“(a) The Tax and Revenue Revision Commission (“Commission”) is established as an 33
independent agency, as that term is defined in § 1-603.01(13).”. 34
“(b) The purpose of the Commission is to serve as an expert standing body to provide 35
recommendations to the Mayor and Council on revisions to the District’s tax code as well as 36
other significant non-tax revenue sources. 37
“(c) The Commission’s duties are to: 38
“(1) Provide for fairness and equity in the apportionment of taxes and promote 39
progressivity in combined tax obligations; 40
“(2) Broaden the tax base; 41
“(3) Assess the impact of fines, fees, and other non-tax revenue source; 42
“(4) Encourage business growth and job creation; and 43
“(5) Modernize, simplify, and increase transparency in the District’s tax code. 44
“(d) Specific functions of the Commission shall include the following: 45
“(1) To analyze the District’s current tax system in terms of revenue productivity 46
and stability, efficiency, equity, simplicity of administration, and effect upon the District’s 47
economy; 48
“(2) To propose innovative solutions for meeting the District’s projected revenue 49
needs while recommending potential modifications to tax rates; 50

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“(3) To identify economic activities which are either beneficial or detrimental to 51
the District’s economy and which should be either encouraged or discouraged through tax 52
policy; 53
“(4) To recommend changes in the District’s current tax policies and laws; 54
“(5) To establish or revise criteria and a conceptual framework for evaluating 55
current and future taxes, including racial equity impacts; 56
“(6) To identify unused and duplicative tax credits and tax abatements and 57
recommend policy changes to improve the way the District utilizes tax expenditures; and 58
“(7) To analyze the specific changes to the District's tax system since the 59
Commission's most recent recommendations to determine the extent to which such changes are 60
consistent with the principles identified in this section. 61
“(d) In preparing the recommendations required by this subchapter, the Commission shall 62
consult with the Code Revision Advisory Group established pursuant to § 47-463a.”. 63
(d) § 47-463 is amended to read as follows: 64
“§ 47–463. Tax and Revenue Revision Commission — Selection of director. 65
“(a) The Commission shall be composed of the Executive Director and such staff as 66
necessary to complete the work of the Commission.”. 67
“(b) The Executive Director shall be appointed by the Chairman of the Council, subject 68
to the approval of a majority of the Council. 69
“(c) The Executive Director shall receive an annual salary consistent with the District of 70
Columbia Government Salary Schedule for Excepted Service (ES) employees, at no lower than 71
Grade 14, exclusive of fringe benefits. 72
“(d) The Executive Director shall be responsible for and oversee the daily operations of 73

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the Commission; supervise Commission staff, and develop and institute internal policies, 74
procedures, and processes to ensure efficient operations. 75
“(e) All employees of the Commission shall be, or shall become no later than 180 days 76
after hire, District residents.”. 77
(e) A new section § 47-463a is added to read as follows: 78
Ҥ 47-463a. Tax Revision Commission РAdvisory Group. 79
“(a) There is established an Advisory Group to review and provide information and 80
suggestions on proposals prepared by the Commission. The Advisory Group shall consist of 7 81
voting members and up to 8 nonvoting members as follows: 82
“(1) The voting members of the Advisory Group shall consist of the following: 83
“(A) Three members appointed by the Mayor, who shall be experts in the 84
field of taxation, such as tax lawyers or public finance economists; and, 85
“(B) Three members appointed by the Chairman of the Council, who shall 86
be experts in the field of taxation, such as tax lawyers or public finance economists. 87
“(C) The Executive Director of the Commission. 88
“(2) The non-voting members of the Advisory Group shall consist of the 89
following: 90
“(A) The Chief Financial Officer, or his or her designee; 91
“(B) The Council Budget Director, or his or her designee; 92
“(C) Two members appointed by the Mayor: 93
“(i) One shall be a community representative, such as a leader of a 94
public-interest group, labor union, civic association, or a tenant or housing association; and 95
“(ii) One shall be a representative of one or more important sectors 96

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of the business community, such as real estate, banking, retail, or high technology. 97
“(D) Two members appointed by the Chairman of the Council: 98
“(i) One shall be a community representative, such as a leader of a 99
public-interest group, labor union, civic association, or a tenant or housing association; and 100
“(ii) One shall be a representative of one or more important sectors 101
of the business community, such as real estate, banking, retail, or high technology.”. 102
“(E) Temporary members appointed pursuant to § 47-466. 103
“(b) Notwithstanding subsection (c) of this section, members shall serve for a term of 3 104
years. Each member may serve beyond the end of their term until reappointed or replaced by the 105
appropriate appointing authority. 106
“(c) Members of the Tax Revision Commission appointed as of the effective date of this 107
act shall continue to serve in their current capacity until 60 days after the submission of the 108
report required pursuant to § 47-465(b). 109
“(d) Meetings of the Advisory Group shall be conducted by the Commission's Executive 110
Director, with meetings scheduled by the Executive Director as necessary to fulfill the statutory 111
responsibilities of the Commission. 112
“(e) The Commission shall provide drafts of its recommended reforms to the Advisory 113
Group in the form of reports. Advisory Group members may provide to the Commission written 114
comments in response to those recommendations within a reasonable period of time, to be 115
determined by the Executive Director, but not less than one month. 116
“(f) The Commission shall consider all written comments that are timely received from 117
Advisory Group members under subsection (c) of this section and propose all final 118
recommendations to the Council based on the comments received. 119

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“(g) The voting members of the Advisory Group shall vote to approve the final 120
recommendations proposed by the Commission, with a majority of voting members necessary to 121
approve the recommendations, before their submittal to the Council. 122
“(h) The Commission shall compile and make publicly available a record of all written 123
comments received from Advisory Group members under subsection (c) of this section.”. 124
(f) § 47-464 is amended as follows: 125
(1) Subsection (a) is repealed. 126
(2) Subsection (b) is amended to read as follows: 127
“(j) The Commission and Advisory Group shall create and operate under its own rules of 128
procedure, consistent with this subchapter and the Administrative Procedure Act, approved 129
October 21, 1968 (D.C. Law 1-92, D.C. Official Code § 2-501 et seq.). Such rules shall not 130
require a consensus vote of the Advisory Group in order to issue recommendations of the 131
Commission.”. 132
(g) A new section § 47-465 is added to read as follows: 133
Ҥ 47-465. Tax Revision Commission РComprehensive update cycles. 134
“(a) (1) No later than February 12, 2025, and every 10 years thereafter, the Commission 135
shall submit to the Council and the Mayor a package of recommendations constituting a 136
comprehensive update to the entirety of the District’s tax code and other non-tax revenue 137
sources. The package shall include draft legislation, regulations, amendments to existing 138
regulations, and other specific steps for implementing the recommendations. 139
“(2) No later than one year prior to the due date of a 10-year comprehensive 140
update as described in this subsection, Council may adopt, by resolution, priorities for the 141
Commission’s subsequent comprehensive review cycle. 142

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“(b) For the comprehensive update recommendations due to Council by February 12, 143
2025, the Commission shall include the following: 144
“(1)(A) Apportionment and tax preparation procedures necessary to enact a 145
Business Activity Tax on gross receipts minus the sum of purchases from other businesses, rent, 146
and capital expenditures; 147
“(B) Recommendations for Business Activity Tax rates necessary to serve 148
as a revenue replacement for the business franchise tax, corporate franchise tax, unincorporated 149
business franchise tax, and other taxes and fees levied on businesses; 150
“(2) An implementation plan for a split rate approach to real property taxation, 151
both residential and commercial, to tax land and improvements at different rates. This shall 152
include procedures for revising the District’s property assessment procedures to accurately assess 153
the value of land minus improvements; 154
“(3) Analysis of the establishment of a progressive marginal rate structure for 155
property tax; 156
“(4) Recommendations for long-term dedicated funding for the District’s 157
obligations to WMATA’s operating budget and capital budget, with an emphasis on sourcing 158
dedicated revenue from counter-cyclical sources, and with appropriate growth rates to keep pace 159
with public transit expenditures; 160
“(5) (A) Analysis of vehicle tolls and other transportation demand management 161
policies such as parking fees, as future revenue sources, and recommended topics of further 162
research and analysis, including the potential for such revenue to offset other revenue sources or 163
be redistributed to residents. 164
“(B) In providing such recommendations, the Commission is authorized, 165

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pursuant to § 47-464(e), to acquire and utilize draft materials from District agencies and 166
contractors produced pursuant to the “Congestion Pricing Study Amendment Act of 2019”, 167
effective September 11, 2019 (D.C. Law 23-16, D.C. Official Code § 50-921.21); and, 168
“(6) A revenue-neutral proposal for tax brackets and rates that improves 169
progressivity in the District’s income tax.”. 170
(h) A new section § 47-466 is added to read as follows: 171
Ҥ 47-466. Tax and Revenue Revision Commission РYearly report on recommendations 172
and technical updates. 173
“(a) For all years outside of a decennial comprehensive update as described in § 47-465, 174
the Commission shall provide to the Mayor and Council a report with recommendations for 175
improvements and technical updates to the District’s tax code and other non-tax revenue raisers. 176
Notwithstanding subsection (b) of this section, such recommendations shall be limited to one or 177
more closely related revenue sources or focused on a specific issue area. 178
“(b) (1) The Council may adopt, by resolution, requests for the Commission’s subsequent 179
yearly report pursuant to this section. 180
“(2) A resolution may include appointment of no more than two temporary non-181
voting members of the Advisory Group, as described in § 47-464a, to serve as a subject matter 182
expert for the subject of the requested yearly report. Such appointments shall expire 60 days after 183
the issuance of the requested report.”. 184
Sec. 3. Fiscal impact statement. 185
The Council adopts the fiscal impact statement in the committee report as the fiscal 186
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 187
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 188

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Sec. 4. Effective date. 189
This act shall take effect after approval by the Mayor (or in the event of veto by the 190
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 191
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 192
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 193
Columbia Register. 194