Meals Tax Relief Amendment Act of 2026

July 14, 2026

Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, D.C. 20004

Dear Secretary Howard,

Today, I am introducing the Meals Tax Relief Amendment Act of 2026, along with
Councilmember Brooke Pinto.

As the District continues to navigate economic uncertainty, supporting our local businesses has
never been more important. The District's unemployment rate remains the highest in the nation at
6.1%, and many restaurants continue to face rising operating costs and changing consumer
spending habits. Restaurants are more than places to eat; they are small businesses, employers,
community gathering spaces, and key drivers of neighborhood vitality and the District's
economy.

The District currently imposes a 10% sales tax on food and beverages prepared for immediate
consumption at restaurants, substantially higher than the District's general 6% sales tax. This
higher tax increases the cost of dining out for residents and visitors alike and can discourage
spending at local restaurants at a time when many establishments continue to recover and adapt
to changing economic conditions.

The Meals Tax Relief Amendment Act of 2026 aligns the tax on food and beverages prepared for
immediate consumption with the District's general sales tax rate. Specifically, the bill reduces the
portion of the meals tax imposed under D.C. Official Code § 47-2002 and D.C. Official Code §
47–2202 from 9 percent to 5 percent through September 30, 2027, and from 10 percent to 6
percent beginning October 1, 2027, when the District's general sales tax is scheduled to increase.
Because the separate 1 percent tax imposed under D.C. Official Code § 47-2002.02 and D.C.
Official Code § 47–2202.01 remains unchanged, the total tax on restaurant meals would be
reduced from 10 percent to 6 percent through September 30, 2027, and from 10 percent to 7
percent thereafter, maintaining parity with the District's general sales tax.

This legislation is intended to continue a broader conversation about how the District can
responsibly modernize its tax structure while strengthening economic growth. The Committee of
the Whole is expected to examine revenue options this fall, providing an opportunity to consider
revenue measures that could offset the fiscal impact of reducing the meals tax while supporting
the District's long-term economic competitiveness.

The Meals Tax Relief Amendment Act of 2026 is intended to support the District's restaurants
while providing meaningful tax relief to residents and visitors who choose to dine locally. By
lowering the cost of dining out, this legislation encourages spending at local businesses,
strengthens neighborhood commercial corridors, and helps build a more vibrant and competitive
local economy.

Sincerely,

Doni Crawford
Councilmember, At-Large
Council of the District of Columbia

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_____________________________ __________________________ 1
Councilmember Brooke Pinto Councilmember Doni Crawford 2
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A BILL 5
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 9
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To amend Chapter 20 of Title 47 of the District of Columbia Code to reduce the rate of tax on 14
the gross receipts from sales of or charges for food or drink prepared for immediate 15
consumption. 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 “Meals Tax Relief Amendment Act of 2026”. 19
Sec. 2. Title 47 of the District of Columbia Code is amended as follows: 20
(a) Section 47-2002(a) is amended as follows: 21
(1) Paragraph (3)(A) is amended by striking the phrase, “Food or drink prepared 22
for immediate consumption as defined in § 47-2001(g-1) or spirituous” and inserting the word 23
“Spirituous” in its place. 24
(2) A new paragraph (3B) is added to read as follows: 25
“(3B) The rate of tax on the gross receipts from sales of or charges for food or 26
drink prepared for immediate consumption as defined in § 47-2001(g-1) shall be 5.0% from the 27
effective date of the Meals Tax Relief Amendment Act of 2026 to September 30, 2026, and 6.0% 28
beginning on October 1, 2027, and continuing thereafter.”. 29
(b) Section 47-2202(a) is amended as follows: 30

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(1) Paragraph (3)(A) is amended by striking the phrase, “Food or drink prepared 31
for immediate consumption as defined in § 47-2001(g-1) or spirituous” and inserting the word 32
“Spirituous” in its place. 33
(2) A new paragraph (3D) is added to read as follows: 34
“(3D) The rate of tax on the gross receipts from sales of or charges for food or 35
drink prepared for immediate consumption as defined in § 47-2001(g-1) shall be 5.0% from the 36
effective date of the Meals Tax Relief Amendment Act of 2026 to September 30, 2026, and 6.0% 37
beginning on October 1, 2027, and continuing thereafter.”. 38
Sec. 3. Fiscal impact statement. 39
The Council adopts the fiscal impact statement in the committee report as the fiscal 40
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 41
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 42
Sec. 4. Effective date. 43
This act shall take effect after approval by the Mayor (or in the event of veto by the 44
Mayor, action by the Council to override the veto) and a 30-day period of congressional review 45
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 46
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 47