District of ColumbiaD.C. applies 11% tax to covered vehicle and trailer rentals
D.C.’s temporary act lists an 11% tax rate on sales, rentals, and leases of covered rental vehicles and utility trailers starting October 1, 2026.
What it does
D.C. lists an 11% tax rate for covered rental vehicle and utility trailer sales, rentals, and leases starting October 1, 2026. The emergency act lasts no longer than 90 days.
Argument forListing the same 11% rate in both tax sections could make the rate clearer for businesses handling covered vehicle and trailer transactions.
Argument againstBusinesses may need to check how they taxed covered transactions from October 1 through October 14 because the act applies before its approval.
More detail
D.C. sets an 11% tax rate on money businesses take in from covered sales, rentals, and leases. It covers rental vehicles and utility trailers under a D.C. definition cited in the act. The emergency act lasts no longer than 90 days after mayoral approval. The act applies as of October 1, 2026, and the 11% rate begins on that date.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 23Act A26-0432 Published in DC Register Vol 73 and Page 013493, Expires on Jan 13, 2027Latest
- Oct 16Returned from Mayor
- Oct 15Signed by the Mayor and Enacted with Act Number A26-0432, Expires on Jan 13, 2027Became Law
- Oct 5Transmitted to Mayor, Response Due on Oct 20, 2026To Governor
- Sep 22Final ReadingMinor
- Vote recorded Final Reading. Result: pass.Legislature
- Sep 22Retained by the Council
- Sep 21B26-0785 Introduced by Chairman Mendelson at Office of the SecretaryIntroduced
Taxes & BudgetTransportation