WASHINGTON — The District of Columbia’s City Council has proposed delaying until Jan. 1, 2013, plans to start taxing non-D.C. bonds purchased by district residents.
The council took the action on Tuesday when it approved a proposed budget for fiscal 2013, which starts Oct. 1. The proposed budget still must be approved by Mayor Vincent Gray.
The city had planned to begin taxing the non-district bonds bought by city residents on Jan. 1 of this year. However, those taxes would not have been reported until April 2013.
By delaying the action by one year, the taxes would not have to be reported until April 2014, although one official said council members are hoping the district’s revenue picture improves so that the proposal to tax out-of-district bonds can be shelved.
The district’s office of revenue analysis said the proposal to eliminate or delay the tax on a year-to-year basis would result in the loss of $1.1 million revenues in fiscal 2013, $1.7 million in fiscal 2014, $2.5 million in fiscal 2015 and $3.8 million for fiscal 2016 — a total of $9.1 million over a four year period.
