District of ColumbiaTemporary bill would apply an 11% tax to vehicle rentals
If it takes effect, this temporary D.C. measure would specify an 11% tax on covered vehicle and trailer rentals from October 1, 2026.
What it does
Covered vehicle and utility trailer rentals and leases would be taxed at 11% from October 1, 2026. The temporary measure needs mayoral approval or a veto override, followed by congressional review.
Argument forA stated rate and start date could help vehicle rental businesses calculate taxes and explain charges to customers.
Argument againstApplying the rate back to October 1 could require rental businesses to revisit tax calculations for transactions completed before the measure takes effect.
More detail
The measure would specify an 11% tax on receipts from covered rentals and leases. It covers rental vehicles and utility trailers as defined in D.C. law. It would take effect after the Mayor's approval or a Council veto override and a 30-day congressional review period. It would apply as of October 1, 2026, and expire 225 days after taking effect.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 26Transmitted to Mayor, Response Due on Nov 09, 2026To Governor
- Oct 6Final Reading, CCMinor
- Vote recorded Final Reading, CC. Result: pass.Legislature
- Sep 25Notice of Intent to Act on B26-0786 Published in the District of Columbia Register
- Sep 22First ReadingMinor
- Vote recorded First Reading. Result: pass.Legislature
- Sep 22Retained by the Council
- Sep 21B26-0786 Introduced by Chairman Mendelson at Office of the SecretaryIntroduced
Taxes & BudgetTransportation