{"data":{"id":"us-dc/d.c.-code-1-301.157","jurisdiction":"us-dc","citation":"D.C. Code § 1-301.157","heading":"Tax preference review.","body":"(a)\nThe CFO shall review all locally adopted tax expenditures on a 5-year cycle and publish annually a report complying with the requirements of this section.\n\n(b)\nBy October 1, 2015, and by October 1 of every year thereafter, the CFO shall submit for publication in the District of Columbia Register a report for on-cycle tax preferences that complies with the requirements of this section.\n\n(d)\nAn on-cycle individual preference shall be analyzed and reported in the following manner:\n(1)\nAn individual preference shall be analyzed and reported in groupings of similarly purposed preferences, with the report focusing on collective effects or trends that emerge.\n(2)\nThe report shall include the stated purpose of the of tax preferences within the grouping, if clarified in the authorizing legislation.\n(3)\nThe report shall include the amount of lost revenue due to the tax preferences within the grouping.\n(4)\nThe report shall include an assessment of the general effects on the District resulting from the preferences.\n(5)\nThe report on groupings of individual preferences shall include recommendations on how to improve similar preferences in the future.\n(6)\nFor groupings of individual tax preferences with an economic development purpose, the analysis shall consider the economic impact of the preferences, and where sufficient data are available, take into account factors including:\n(A)\nWhether the economic impact of the tax preferences would have been expected without the preferences;\n(B)\nThe extent to which the economic impact of the tax preferences was offset by economic losses elsewhere;\n(C)\nThe average economic impact for a level of direct expenditures equal to the cost of the tax preferences;\n(D)\nThe indirect economic impact of the tax preferences;\n(E)\nThe number of jobs created by the preference;\n(F)\nThe wages of the jobs created;\n(G)\nThe percentage of jobs filled by District residents; and\n(H)\nWhether any terms of the tax preferences have been or are being satisfied.\n\n(e)\nExcept as provided in subsection (f) of this section, on-cycle categorical preferences shall receive a full review that, where sufficient data are available, includes:\n(1)\nThe purpose of the tax preference, if clarified in the authorizing legislation;\n(2)\nThe tax preference’s cost in terms of lost revenue;\n(3)\nAn assessment of whether the tax preference is meeting its goals;\n(4)\nAn assessment of whether the tax preference is achieving other goals;\n(5)\nRecommendations for improving the effectiveness of the tax preference;\n(6)\nRecommendations for whether the tax preference should be modified, discontinued, or remain in its existent state; and\n(7)\nFor tax preferences with an economic development purpose, an analysis that measures the economic impact of the preference, including:\n(A)\nWhether the economic impact of the tax preference would have been expected without the preference;\n(B)\nThe extent to which the economic impact of the tax preference was offset by economic losses elsewhere;\n(C)\nThe average economic impact for a level of direct expenditures equal to the cost of the tax preference; and\n(D)\nThe indirect economic impact effect of the tax preference.\n\n(f)\nFor on-cycle categorical tax preferences that the CFO determines do not merit a full review, the CFO shall instead perform a summary review. In determining which tax preferences are appropriate for a summary review, the CFO shall consider factors including, at a minimum:\n(1)\nThe revenue lost due to the tax preference and the number of potential or actual claimants;\n(2)\nWhether the revenue lost due to the preference has increased or decreased since the preference was last reviewed;\n(3)\nWhether the preference has been included in legislative or administrative proposals to modify or repeal; and\n(4)\nWhether the preference is required by Chapter 2 of this title [§  2-201.01 et seq.].\n\n(g)\nA report on a categorical preference designated for summary review shall include:\n(1)\nA narrative summary of the preference, including its purpose;\n(2)\nThe source and year of statutory authorization;\n(3)\nThe fiscal impact of the preference; and\n(4)\nA description of the beneficiaries of the tax preference.\n\n(h)\nAll District agencies, offices, and instrumentalities shall cooperate with the CFO and shall provide any records, information, data, and data analysis needed to complete the reviews and reports required by this section.","path":["Title 1. Government Organization.","Chapter 3. Specified Governmental Authority.","Subchapter I. Additional Governmental Powers and Responsibilities.","Part I. Chief Financial Officer Additional Duties."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/1-301.157","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"e9b51e89caed3c8f5a6894edf3b78746ae6233543d0a37e462795586058e0052","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-1-301.156","next":"us-dc/d.c.-code-1-301.158"},"notice":"GroundRules: Original legal text. Not legal advice."}