TTR has received informal guidance from the Washington D.C. Office of Tax and Revenue that the District intends to adopt economic nexus rules by the end of the year.
The District City Council has already passed an economic nexus rule like the one approved by the United States Supreme Court in the Wayfair decision. The rule imposes a collection requirement on out-of-state sellers that sell more than $100,000 or 200 or more separate retail transactions delivered into the District. The rule also addresses marketplace seller and facilitator collection and reporting requirements.
The Mayor of Washington D.C. has not yet signed the rule into law. The Office of Tax and Revenue anticipates having an emergency rule in place by the end of the year, because the rule will still have to be transmitted to Congress for a 30 day review period even after the Mayor signs the law.
We are providing this update in advance so that remote sellers will have time to implement software changes, even though a final rule has not been formally made into a law. Sellers should anticipate the $100,000 or 200 transaction rule will be in place and be enforced by January 1, 2019.