The move from paying vending fees to paying sales tax was inevitable for DC’ gourmet food trucks. The thing to highlight in yesterday’s passage of the Sales Tax Act was that Councilman Evans introduced an amendment to clarify that only one tax return per business would be required, and it also eliminated any possibility of double-taxation for food trucks.
Tom MacDonald, from DC Slices had this to add: ”While the Sales Tax Act moves forward, we continue to wait for Mayor Vincent Gray’s new set of vending regulations, which he proposed in January. This week marks the 9th week since the public comment period closed.”
The full press release is copied below.
DC Food Trucks Applaud Council’s Passage of Sensible Tax Act
Wait Continues for Mayor’s New Vending Regulations
WASHINGTON, DC – The Washington, DC Food Trucks Association (DCFTA) today applauded the DC City Council for passing a new vending sales tax that makes common sense and can be implemented as intended.
“The DCFTA is grateful to Councilman Jack Evans and his staff for their attentiveness to getting the new sales tax policy right,” said Tom MacDonald, spokesman for the DCFTA and Co-Owner of DC Slices.
The Sales Tax Act, as introduced earlier this year, raised concerns that it could have had the unintended effect of double-taxing food trucks. It also would have left individual food truck employees liable for filing the business’ tax returns and remitting sales tax, and would have required each food truck to file multiple sales tax returns.
DCFTA members met with Councilman Evans’ staff and offered suggestions for how to improve the Sales Tax Act. In response to these suggestions, Councilman Evans introduced an amendment, which was adopted yesterday to clarify that employees would not be responsible for filing the business’ tax returns. The amendment also created a sensible one tax return per business process, and eliminated any possibility of double-taxation for food trucks.
“The Sales Tax Act is a step in having food trucks treated like real businesses, and food trucks welcome the recognition that we are real businesses and look forward to serving as a means to provide additional revenue to the District,” MacDonald said. “It’s what we’ve always said – food trucks are good for the District.
“While the Sales Tax Act moves forward, we continue to wait for Mayor Vincent Gray’s new set of vending regulations, which he proposed in January,” MacDonald said. “This week marks the 9th week since the public comment period closed.”
During the comment period that ended on Friday, March 1, 2012, the Department of Consumer and Regulatory Affairs (DCRA) received thousands of comments concerning proposed regulations that would update the District’s nearly 40-year-old vending rules. The overwhelming majority of the commenters agreed with the DCFTA’s view that the proposed rules should be adopted quickly so as to allow new and innovative small businesses to stay in business. The regulations were opposed by a small number of special interest groups in the District.
“DCFTA and its small business members were especially encouraged by the huge outpouring of popular support for the regulations received from the people who matter most – the residents, workers, visitors and consumers in the District,” said MacDonald.