D.C. Code § 47-2002.03a: Additional tax on gross receipts for transient lodgings or accommodations.

(a)

(1)

A tax, separate from and in addition to, the tax imposed pursuant to § 47-2002(a)(2)(A) and the tax imposed pursuant to § 47-2002.02, is imposed on all vendors at the rate of 0.3% of the gross receipts from the sale of or charges for any room or rooms, lodgings, or accommodations furnished to a transient by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients.

(2)

A tax, separate from and in addition to the taxes imposed pursuant to § 47-2002(a)(2)(A), § 47-2002.02, and paragraph (1) of this subsection, is imposed on all vendors at the rate of 1.0% of the gross receipts from the sale of or charges on or after April 1, 2023, and on or before September 30, 2027, for any room or rooms, lodgings, or accommodations furnished to a transient by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients.

(b)

If the occupancy of a room or rooms, lodgings, or accommodations is reserved, booked, or otherwise arranged for by a room remarketer, the tax imposed by this section shall be determined based on the net charges and additional charges received by the room remarketer.

(c)

(1)

Except as provided in paragraph (2) of this subsection, the tax revenue received pursuant to this section shall be dedicated to the Washington Convention and Sports Authority, for transfer to Destination DC for the purposes of marketing and promoting the District of Columbia as a destination. Any tax revenue dedicated pursuant to this subsection shall be in addition to the funds dedicated to Destination DC pursuant to § 10-1202.08a.

(2)

Beginning October 1, 2025, the tax revenue received pursuant to subsection (a)(2) of this section shall be deposited as follows:

(A)

In the following fiscal years, the following amounts shall be deposited in the Economic Development Special Account established by [§ 2-1225.21]:

(i)

In Fiscal Year 2026, $10,466,000; and

(ii)

In Fiscal Year 2027, $6,140,000.

(B)

All other tax revenue received pursuant to subsection (a)(2) of this section shall be deposited in local funds.

(d)

For the expenditure of any tax revenue received by Destination DC pursuant to this section, Destination DC shall:

(1)

Comply with the requirements of § 2-218.46;

(2)

Consult with the Deputy Mayor for Planning and Economic Development, the Washington Convention and Sports Authority, the Restaurant Association Metropolitan Washington, and the Hotel Association of Washington, DC on the use of any such tax revenue received; and

(3)

Enter into a memorandum of understanding with the Mayor regarding the use of any tax revenue received pursuant to subsection (a)(2) of this section in accordance with the recommendations determined necessary and appropriate pursuant to the consultations required by paragraph (2) of this subsection.