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ENROLLED ORIGINAL
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A RESOLUTION
26-248
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
November 4, 2025
To declare the existence of an emergency with respect to the need to amend certain provisions of
Chapter 18 of Title 47 of the District of Columbia Official Code so that they no longer
conform to corresponding provisions of the Internal Revenue Code of 1986 and to make
other technical and conforming changes.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the “D.C. Income and Franchise Tax Conformity and Revision
Emergency Declaration Resolution of 2025”.
Sec. (a) On July 4, 2025, President Trump signed into law An Act To provide for
reconciliation pursuant to title II of H. Con. Res. 14, approved July 4, 2025 (Pub. L. No. 119-21;
139 Stat. 72), also known as the “One Big Beautiful Bill Act” (“OBBBA”). The OBBBA
contains approximately 84 tax-related provisions. Because the District is a rolling conformity
jurisdiction (i.e., the District’s tax code is coupled with the federal tax code unless otherwise
specified in law), these tax provisions will automatically go into effect unless the Council takes
action.
(b) It is necessary to decouple the District’s tax code from these (and other) tax
provisions in the OBBBA on an emergency basis for 3 reasons:
(1) According to estimates from the Office of the Chief Financial Officer, tax
provisions in the OBBBA will reduce District revenues by $94.4 million in Fiscal Year 2025,
and $657.8 million from Fiscal Year 2025 through Fiscal Year 2029. With a protracted federal
government shutdown, a projected revenue decline of nearly 2% from Fiscal Year 2025 to Fiscal
Year 2026, and slow revenue growth projected thereafter, the District must be very thoughtful
about how our revenues are expended;
(2) The Council has not had adequate time to determine what, if any, tax
provisions in the OBBBA should be adopted by the District. Moving this legislation on an
emergency basis will give the Council more time to thoughtfully analyze and consider the
various tax provisions of the OBBBA; and
(3) Several of these tax provisions, such as no tax on overtime and no tax on tips,
are retroactive to tax year 2025 or earlier. The Office of Tax and Revenue needs sufficient time
to develop forms, guidance, etc., to effectuate any decoupling of these provisions.
ENROLLED ORIGINAL
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(c) The revenue restored by decoupling, when coupled with September 2025 revenue
estimates from the Office of the Chief Financial Officer, also presents the Council with an
opportunity to revisit decisions about tax expenditures. Modifications to tax expenditures for tax
year 2025 need to be adopted immediately to ensure that the Office of Tax and Revenue has
sufficient time to prepare for the upcoming filing season. More consequential changes to take
effect in tax year 2026—such as the reestablishment of a child tax credit—need to be established
in law for a longer period of time to ensure that the Office of the Chief Financial Officer has time
to prepare new tax forms and coordinate with tax preparation vendors to ensure the smooth
integration of changes into direct filing systems.
Sec. 3. The Council of the District of Columbia determines that the circumstances
enumerated in section 2 constitute emergency circumstances making it necessary that the
D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025
be adopted after a single reading.
Sec. 4. This resolution shall take effect immediately.