Carol Schwartz
Councilmember Harold Brazil
Councilmember Sandy Allen
Councilmember Sharon Ambrose
Councilmember r Kathy Patterson
Councilmember Kevin Chavous
Chairman Linda W. Cropp
Councilmember Adrian Fenty
Councilmember David Catania
Councilmember Jack Evans
Councilmember Vincent Orange
A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmember Carol Schwartz introduced the following bill, which was
referred to the Committee on Finance and Revenue.
To amend Title 47 of the District of Columbia Code to provide for a
sales tax holiday beginning at 12:01 a.m. on August 2, 2002 and ending at
midnight on August 11, 2002, for clothing and school supplies costing less
than $100; and to provide that these provisions will only go into effect
upon a certification by the Chief Financial Officer that collected revenue
exceeds the projected revenue for 2002.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act
may be cited as the "Sales Tax Holiday Amendment Act of 2001 ".
Sec. 2. Section 47-2005 of the District of Columbia Code is amended as
follows:
(a) Paragraph (28) is amended by striking the word "and" at
the end of the paragraph.
(b) Paragraph (29) is amended by striking the period at the end of the
paragraph and inserting the phrase "; and" in its place.
(c) A new paragraph (30) is added to read as follows:
"(30)(A) Subject to the other provisions of this paragraph, sales
of any school supply or article of clothing for less than $100, when the
purchase is made between 12:01 a.m. on Friday, August 2, 2002, and
midnight on Sunday, August 11, 2002."(B) The exemption shall apply to:
"(i) Each eligible item regardless of how many items are sold
on the same invoice to a customer;"(ii) Mail order sales, including online sales, if the
seller accepts the order during the exemption period for immediate
shipment. Shipping and handling charges shall be included as part of
the sales price of the eligible item, whether or not separately
stated. If multiple items are shipped on a single invoice, the
shipping and handling charges shall be proportionately allocated to
each item ordered and separately identified on the invoice;"(iii) Layaway sales if the retailer and the customer enter
into a layaway agreement during the exemption period or if the
customer makes final payment on a layaway order during the exemption
period;"(iv) Sales using a rain check, regardless of when the rain
check is issued, if the item is actually purchased during the
exemption period; and"(v) Sales of eligible items purchased during the exemption
period if the item is later exchanged for another exempt item after
the exempt period."(C) The exemption shall not apply to:
"(i) Exempt items normally sold as a unit with nonexempt
items if the items are separated in order to qualify for the
exemption;"(ii) Nonexempt items which are exchanged for the exempt items;
"(iii) Items advertised as "buy one, get one
free," or "buy one, get one for a reduced price," if
one or both items are averaged to qualify for the exemption;"(iv) Items whose prices are reduced by a manufacturer’s
coupon to qualify for the exemption;"(v) Repairs and alterations to exempt items;
"(vi) Items for rent; and
"(vii) Items sold in public lodging establishments.
"(D) For the purposes of this paragraph, the term:
"(i) "Accepts the order" means an action to fill an
order for immediate shipment, including placing a date stamp on a
mail order or assigning a transaction number to a telephone order."(ii) "Clothing" means an article of wearing
apparel for humans, including all footwear except skis, swim fins,
roller blades, and skates."(iii) "Immediate shipment" means an order for
which delayed shipment is not requested by the customer."(iv) "Public lodging establishment" means a
hotel, motel, or any other transient lodging place. The term
"public lodging establishment" shall not include a
dormitory maintained by an educational institution for the use
of students, a hospital, or a nursing home."(v) "School supply" means an item purchased for
use in the classroom, at home, or for any school activity, including
pens, pencils, stationery, book bags, lunchboxes, and calculators."(E) A customer who pays sales tax on an exempt item to a
retailer during the exempt period shall be entitled to a refund of the
tax from the retailer and not from the Mayor.
Sec. 3. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as
the fiscal impact statement required by section 602(c)(3) of the District
of Columbia Home Rule approved December 24, 1973 (87 Stat. 813; D.C. Code
§ 1-233(c)(3)).
Sec. 4. Applicability.
Section 2 shall apply as of the date that the Chief Financial Officer
certifies that the collected revenues for the Fiscal Year 2002 will exceed
the projected revenues for Fiscal Year 2002 by an amount which is at least
equal to the projected revenue loss from the operation of this section.
This section shall not be effective unless the Chief Financial Officer
makes such certification.
Sec. 5. Effective date.
This act shall take effect following approval by the Mayor (or in the
event of veto by the Mayor, action by the Council to override the veto),
approval by the Financial Responsibility and Management Assistance
Authority as provided in section 203(a) of the District of Columbia
Financial Responsibility and Management Assistance Act of 1995, approved
April 17, 1995 (109 Stat. 116; D.C. Official Code §47-392.03(a)), a
30-day period of Congressional review as provided in section 602(c)(1) of
the District of Columbia Home Rule Act, approved December 24, 1973 (87
Stat. 813; D.C. Official Code §1-206.02(c)(1)), and publication in the
District of Columbia Register.