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District of Columbia issues sales tax regulations on taxable services, including health clubs and household goods storage

The District of Columbia Office of Tax and Revenue (OTR) recently has promulgated sales and use tax regulations to provide guidance on the taxation of certain services. Last year, the District enacted legislation imposing tax on the following services beginning on Oct. 1, 2014: (i) bottled water delivery, (ii) storage of household goods, (iii) carpet and upholstery cleaning, (iv) health clubs or tanning, (v) car washing, and (vi) bowling alleys or billiard parlors. The new regulations include all of these services, but the taxation of health club services and household goods storage services has garnered the greatest attention. As discussed below, the regulations are consistent with and expand upon initial guidance previously issued by the OTR.

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