District of Columbia B 26-0229: Personal Property Tax Simplification Amendment Act of 2025

Bill Text

COUNCIL OF THE DISTRICT OF COLUMBIA 
The John A. Wilson Building 
1350 Pennsylvania Avenue, NW 
Washington, D.C. 20004 
Statement of Introduction 
Personal Property Tax Simplification Amendment Act of 2025 
April 21
, 2025 
Today, I am re-introducing the Personal Property Tax Simplification Amendment Act of 2025 
along with Chairman Mendelson, Councilmembers Janeese Lewis George, Matthew Frumin, 
Charles Allen, Anita Bonds, Brianne K. Nadeau, Brooke Pinto, and Robert C. White, Jr. This 
legislation would raise the current personal property tax exemption for businesses in the District 
from $225,000 to $325,000 and remove the requirement for filers under the threshold to file the 
personal property (FP-31) tax return form. This measure was originally introduced during 
Council Period 25. 
The District of Columbia levies a personal property tax on all tangible business property, 
excluding inventories. The rate is $3.40 per $100 of taxable value, with the first $225,000 
exempt. Taxable property includes machinery, equipment, and furniture, but excludes software 
unless integrated into hardware. Nonprofits and specific businesses (such as solar systems and 
qualified supermarkets) are exempt. Currently, all businesses, regardless of tax owed or 
exemptions, must file an FP-31 form, detailing each asset's value and depreciation. This 
requirement creates significant administrative burdens, particularly for smaller businesses with 
little to no taxable property. According to data provided by the Tax Revision Commission, about 
60,000 personal property tax returns were filed from July 2022 to June 2023, but fewer than 
1,500 filers had a tax liability. Additionally, the current $225,000 exemption was established in 
2008. If adjusted for inflation, the exemption value would be $324,000 today. 
Currently, twelve states do not tax businesses’    personal property at all: Delaware, Hawaii, 
Illinois, Iowa, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Ohio, 
Pennsylvania, and South Dakota. In addition, many other states are pursuing strategies to reduce 
or eliminate tangible personal property taxes. Nationwide, nearly 100 bills have been introduced 
in
 23 states to reduce personal property taxes.  Aligning with these efforts ensures that D.C. 
remains an attractive place for small businesses, reducing administrative burdens and promoting 
economic vitality. 
I look forward to continuing to work with my Council colleagues to advance these critical 
reforms, ensuring that the District remains competitive for small businesses while alleviating 
unnecessary administrative burdens. 
Christina Henderson Committee Member
 
Councilmember, At-Large Human Services 
Chair   person, Committee on Health Facilities 
Transportation and the Environment 

 
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Chairman Phil Mendelson     Councilmember Christina Henderson 2 
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Councilmember Janeese Lewis George   Councilmember Matthew Frumin 6 
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Councilmember Anita Bonds     Councilmember Charles Allen 10 
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Councilmember Brianne K. Nadeau    Councilmember Brooke Pinto 14 
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Councilmember Robert C. White, Jr. 18 
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A BILL 22 
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 27 
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To amend Chapter 15 of Title 47 of the District of Columbia Official Code to increase the dollar 32 
threshold for levying the personal property tax, and to exempt filers from including the 33 
value of their tangible personal property on their tax returns if the value is below the 34 
dollar threshold for taxation.   35 
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 37 
act may be cited as the “Personal Property Tax Simplification Amendment Act of 2025”. 38 
Sec. 2. Chapter 15 of Title 47 of the District of Columbia Official Code is amended as 39 
follows: 40 
(a) D.C. Official Code § 47-1522(a) is amended to read as follows:  41 

 
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“(a) Each year the District shall levy a tax against every person on the tangible personal 42 
property owned or held in trust in that person’s trade or business in the District.  The rate of tax 43 
shall be as follows: 44 
“(1) For tax years ending before June 30, 2025, the rate of tax shall be $3.40 for 45 
each $100 of value of the taxable personal property, in excess of $225,000 in value; 46 
“(2) For the tax year beginning on July 1, 2026, the rate of tax shall be $3.40 for 47 
each $100 of value of the taxable personal property, in excess of $325,000 in value; and 48 
“(3) For each tax year thereafter, the rate of tax shall be $3.40 for each $100 of 49 
value of the taxable personal property, in excess of $325,000 mul