D.C. Sales Tax Exemption for Hotel stays for Federal Troops Extended

Tax Notice 2021-03 issued by D.C. Office of Tax and Revenue (OTR) has extended the sales tax exemption for hotel stays by federal and state troops from March 31st, 2021 until May 31st, 2021.

This extension will address troops from federal agencies and other states that were deployed to the capital indefinitely. The initial exemption was the result of the violent protest and raid of the capitol that took place starting on January 6, 2021. Mayor Bowser initially declared a Public Emergency Pursuant as a result.

For additional information, please contact OTR’s Customer Service Administration at (202) 727-4TAX (4829).

Tips for the Taxpayer

Hotels and other businesses that must administer this exemption should be aware of the appropriate method of application and what documentation is needed to substantiate it. They should also be conscious to ensure proper reporting on their sales tax returns. Businesses should consult a tax professional for guidance if they are not certain what is required of them. 

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations.

Allyn tax analysts manage sales tax obligations for our clients on a daily basis. Circumstances such as researching taxability, applying exemptions, reviewing exemption documentation, and preparing and filing tax returns are all areas where this news update could matter and that our team is well equipped to handle.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com..

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.