District of Columbia enacts budget including single sales factor apportionment, market-based sourcing

The District of Columbia Council adopted the Fiscal Year 2015 Budget Support Emergency Act of 2014 on July 14, overriding a veto by Mayor Vincent Gray. The measure includes the adoption of a single sales factor for apportionment purposes and market-based sourcing rules for sales of items other than tangible personal property for tax years beginning after Dec. 31, 2014. The newly adopted rules also impose a sales tax on specified services, modify the taxation of tobacco products, reduce the corporate income tax and unincorporated business tax rates, change personal income tax and estate tax rates and standard deduction amounts, and modify property tax provisions.

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