New Tax for Street and Mobile Food Vendors

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Price hikes coming to purchase pizza, tacos and grilled cheese sandwiches? Only time will tell how the new tax on DC’s food trucks and other street vendors will affect curbside offerings, but effective October 1st, these businesses will have to collect a 10% sales tax on food–something brick-and-mortar restaurants now do–and a 6% sales tax on other sales items. Under the Vendor Sales Tax and Collection and Remittance Act of 2012, passed by the DC Council in May, the first return and remittance will be due on January 20, 2013, for the period covering October 1st through December 31st. All told, DC’s 1,200 food trucks and mobile vendors are expected to generate up to $1.2 million in tax revenue per year for the city. The Office of Tax and Revenue (OTR) will lead a workshop to explain the new legislation and filing requirements tonight, from 6:00 pm to 8:00 pm, at its Southwest DC office. For more information, call 202.727.4829, or email taxhelp@dc.gov.