Councilmember Linda Cropp
Councilmember Phil Mendelson
Councilmember Sandra C. Allen
Councilmember Jim Graham
Councilmember Harold Brazil
Councilmember Kathy Patterson
A BILL IN
THE COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmembers Phil Mendelson
introduced the following bill, which was referred to the Finance and Revenue.
To amend the District of Columbia tax
code to conform with federal law.
BE IT ENACTED BY THE COUNCIL OF THE
DISTRICT OF COLUMBIA, That this act may be cited as the "Federal Conformity Tax
Amendment Act of 1999".
Sec. 2. Title 47 of the District of
Columbia Code is amended as follows:
(a) Section 47-1801.4(26) is amended
by striking subsections (A) and (B), and replacing them as follows:
"§47-1801.4(26)(A)
"standard deduction" for the purposes of the
District’s individual income tax shall mean "standard deduction" as defined in
section 63(c) of the Internal Revenue Code;"(B) For the purposes of the
individual income tax, a taxpayer may be classified as single, head of household, married
filing jointly, or married filing separately.".
(b) Section 47-1803.1 is amended by
inserting "for purposes of the District individual income taxes, "net
income" means income as defined in section 63 of the Internal Revenue Code of 1986,
Provided that the following shall be excluded from the calculation of net income"
(1) Social Security income;
(2) The distributive share of a trade
or business net income that is subject to the unincorporated business franchise tax
imposed under subchapter VIII of this chapter;(3) Any state or local income tax
refund included in federal net income;(4) Income received or, in the case
of a taxpayer reporting on an accrual basis, income accrued when the taxpayer was not a
resident of the District; or(5) Interest and dividend income on
obligations or securities of the United States, or its agencies or instrumentalities, to
the extend this income is included in federal net income.
(c) Section 47- 1806.2(i) is amended
by adding a new paragraph (6), to read as follows:
"(6) For taxable years beginning
after December 31, 1999, the same as defined in section 151 (d) of the Internal Revenue
Code of 1986.".
Section 47-1806.3(a) is amended by
adding new paragraphs (3), (4), and (5) at the end to read as follows:
"(3) In the case of a taxable
year beginning after December 31, 1999, there is imposed on the taxable income of every
resident who files singly, a tax determined in accordance with the following table:
| "If the taxable income is | The tax is: |
| "not over 10,000 | 6% of the taxable income. |
| "Over $10,000 but not over $25,000 | 8% of the taxable income. |
| "Over 25,000 | 9.5% of the taxable income. |
"(4) In the case
of a taxable year beginning after December 31, 1999, there is imposed on the taxable
income of every resident who files married jointly, a tax determined in accordance with
the following table:
| "if the taxable income is | The tax is: |
| "not over 20,000 | 6% of the taxable income. |
| "Over $20,000 but not over $50,000 | 8% of the taxable income. |
| "Over 50,000 | 9.5% of the taxable income |
"(5) In the case
of a taxable year beginning after December 31, 1999, there is imposed on the taxable
income of every resident who files head of household, a tax determined in accordance with
the following table:
| "if the taxable income is | The tax is: |
| "not over 15,000 | 6% of the taxable income. |
| "Over $15,000 but not over $37,500 | 8% of the taxable income. |
| "Over 37,500 | 9.5% of the taxable income." |
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 Act, approved December 24, 1973 (87 Stat.
813; D.C. Code § 1-233(c)(3)).
Sec. 4. 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. Code §47-392.3(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. Code § 1-233(c)(1)), and publication in the District of Columbia
Register.