Code of the District of Columbia

§ 47–3802. Tax exemption.

*NOTE: This section has been amended by emergency legislation with identical permanent legislation that will become effective in December, 2021.*

(a) The development of a qualified supermarket, qualified restaurant, or retail store shall be eligible for:

(1) A 10-year real property tax exemption under § 47-1002(23);

(2) A 10-year exemption from the license fee under § 47-2827(b);

(3) A 10-year personal property tax exemption as provided under § 47-1508(a)(9); and

(4) A sales and use tax exemption on the purchase of all building materials related to the development of a qualified supermarket, qualified restaurant, or retail store as provided under §§ 47-2005(28) and 47-2206.

(b) Notwithstanding the provisions of subsection (a) of this section, a qualified restaurant or retail store shall not be eligible for an exemption beginning on or after October 1, 2010 until the fiscal effect of any such new exemptions is included in an approved budget and financial plan.

(c)(1) Effective for applications filed on or after January 1, 2011, to be eligible for any exemption provided under subsection (a) of this section, an applicant shall file with the Mayor, in such manner and form as the Mayor may prescribe, an application requesting certification of eligibility for the exemption. As part of the application, and as a condition of certification, an applicant seeking an exemption for a qualified supermarket shall agree in writing to:

(A) Become authorized to accept Supplemental Nutrition Assistance Program ("SNAP") benefits as payment at the qualified supermarket, and to accept SNAP benefits for payment after such authorization;

(B) Apply to the Department of Health ("DOH") for approval to accept Special Supplemental Nutrition Program for Women, Infants, and Children ("WIC") benefits as payment at the qualified supermarket, and accept WIC benefits as payment at the qualified supermarket if approved by DOH to accept WIC benefits; and

(C) Conduct community listening sessions on the store's product offerings and operations at least once every 2 years.

(2) The Mayor shall, as nearly as practicable, complete review of requests for certification within 45 days after receipt.

(3) The Mayor shall certify to the Office of Tax and Revenue each taxpayer and property eligible for an exemption. The certification shall identify:

(A) The tax to which the certification applies;

(B) The specific taxpayer (including taxpayer identification number) and property (by square and lot or parcel or reservation number) eligible;

(C) The type or portion of the property that is eligible;

(D) The effective date of eligibility;

(E) The date on which eligibility is to terminate; and

(F) Such other information as the Office of Tax and Revenue shall require to administer the exemption.

(4) The Office of Tax and Revenue shall, as nearly as practicable, review and process certifications by the Mayor for real property tax exemptions under subsection (a)(1) of this section within 10 days after receipt.

(5) The Mayor shall notify the Office of Tax and Revenue if any taxpayer or property certified as eligible under paragraph (3) of this subsection becomes ineligible for an exemption under subsection (a) of this section. The notification shall identify:

(A) The type of tax to which the notice applies;

(B) The taxpayer (including taxpayer identification number) and property (by square and lot or parcel or reservation number);

(C) The type or portion of the property ineligible;

(D) The date on which the taxpayer or property became ineligible; and

(E) Such other information as the Office of Tax and Revenue shall require to administer the termination of the exemption.

(6) This subsection applies to the application requirements otherwise applicable to requests for exemption from the taxes listed in subsection (a) of this section, but shall not affect any other provision governing administration of the taxes.

(d) A qualified supermarket certified by the Mayor pursuant to this section shall be eligible for the tax exemptions provided by subsection (a)(1) through (3) of this section throughout the 10-year tax abatement period even if, during the 10-year period, the boundary of the eligible area in which the qualified supermarket was located at the time of certification changes and, as a result of the boundary change, the supermarket is no longer located in an eligible area.

(e) To remain eligible to continue to receive the tax benefits provided by this chapter, a qualified supermarket shall:

(1) Accept SNAP benefits for payment at the qualified supermarket;

(2) Accept WIC benefits for payment at the qualified supermarket, unless determined ineligible by DOH to accept payments by WIC benefits; and

(3) Conduct a community listening session on the store's product offerings and operations at least once every 2 years.

(f) The Mayor shall review the definition of the term "eligible area" at least once every 5 years to determine whether it continues to appropriately reflect the areas of the District where tax incentives for new supermarkets provide substantial benefits to District residents and neighborhoods.