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Sales Taxes in the District of Columbia: Tables
William F. Fox
September 1997

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Table 1
Exempt Sales as a Percent of Total Sales
Tax Year Percent
1989 59.44
1990 55.50
1991 56.97
1992 54.49
1993 59.75
1994 53.80
1995 56.09
1996 60.34
Source: District of Columbia Department of Finance and Revenue and author's calculations.

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Table 2
1996 Exempt Sales as a Percent of
Total Reported Sales for Selected Industries*
Industry Sector Percent
Apparel & finished products manufacturing 90.44
Nondurable wholesale trade 89.92
Durable wholesale trade 78.10
Health services 73.86
Business services 70.40
Food stores 59.04
Furniture & equipment stores 47.02
Motion pictures 40.36
Legal services 26.01
General merchandise stores 19.92
Amusement & Recreation 18.36
Apparel & accessory stores 11.44
Hotels, rooming houses, etc. 8.36
Eating & drinking places 7.26
Source: District of Columbia Department of Finance and Revenue and author's calculations.
*Firms may not report all exempt sales.

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Table 3
Taxation of Services in D.C., Maryland and Virginia
Service Type D.C. Maryland Virginia Total
Services
Utilities 10 5 1 16
Personal 7 3 3 20
Business 11 13 4 34
Computer 6 1 0 6
Amusements 6 11 1 14
Professional 0 0 0 8
Fabrication, Repair, Install 13 4 4 19
Other 10 2 5 47
Total 63 39 18 164
Source: Federation of Tax Administrators (1997b).

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Table 4
State and Local Sales Tax Rates
State Local S & L City
Alabama 4 4 8 Birmingham
Alaska 5 5 Juneau
Arizona 5 2.7 7.7 Yuma
Arkansas 4.5 2.5 7 Little Rock
California 6 2.25 8.25 Los Angeles
Colorado 3 4.3 7.3 Denver
Connecticut 6 0 6
Delaware 0 0
District of Columbia 5.75 5.75
Florida 6 0.5 6.5 Miami
Georgia 4 2 6 Atlanta
Hawaii 4 0 4
Idaho 5 0 5 Boise
Illinois 6.25 2.5 8.75 Chicago
Indiana 5 0 5
Iowa 5 1 6 Dubuque
Kansas 4.9 1 5.9 Kansas City
Kentucky 6 0 6
Louisiana 4 5 9 New Orleans
Maine 6 0 6
Maryland 5 0 5
Massachusetts 5 0 5
Michigan 6 0 6
Minnesota 6.5 1 7.5 Minneapolis
Mississippi 7 0 7
Missouri 4.225 2.625 6.85 St. Louis
Montana 0 0
Nebraska 5 1.5 6.5 Omaha
Nevada 6.5 0.5 7 Reno
New Hampshire 0
New Jersey 6 0 6
New Mexico 5 1.25 6.25 Santa Fe
New York 4 4.25 8.25 New York
North Carolina 4 2 6 Raleigh
North Dakota 5 1 6 Bismarck
Ohio 5 2 7 Cleveland
Oklahoma 4.5 3.875 8.375 Oklahoma City
Oregon 0 0
Pennsylvania 6 1 7 Philadelphia
Rhode Island 7 0 7
South Carolina 5 1 6 Charleston
South Dakota 4 2 6 Rapid City
Tennessee 6 2.25 8.25 Nashville
Texas 6.25 2 8.25 Dallas
Utah 4.875 1.35 6.225 Salt Lake City
Vermont 4 0 4
Virginia 3.5 1 4.5 All
Washington 6.5 1.7 8.2 Seattle
West Virginia 6 0 6
Wisconsin 5 0.6 5.6 Milwaukee
Wyoming 4 2 6 Cheyenne
Source: Commerce Clearinghouse, State Tax Guide.

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Table 5
Distribution of Taxable Sales by Rate
Percentage of Base at Different Rates
Tax Year 5.75% 8% 10% 12% 13%
1989 67.67 0.05 20.62 2.25 9.41
1990 67.80 0.01 20.50 2.54 9.15
1991 65.60 0.02 21.27 2.65 10.47
1992 64.73 2.88 20.37 2.62 9.40
1993 59.43 5.48 21.52 2.79 10.78
1994 60.06 7.00 20.70 4.09 8.15
1995 62.65 2.44 21.46 2.97 10.48
1996 63.30 2.36 20.82 3.22 10.30
Source: District of Columbia Department of Finance and Revenue and author's calculations.

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Table 6
Distribution of Taxable Sales by Tax Rate, 1996
Tax Rate
Industry Sector 5.75% 8% 10% 12% 13%
Apparel & accessory stores 99.54 0.36 0.09 0.00 0.01
Furniture & equipment stores 99.26 0.57 0.13 0.00 0.04
General merchandise stores 96.70 0.77 2.52 0.00 0.01
Food stores 55.39 15.35 28.18 0.07 1.01
Eating & drinking places 7.31 0.39 87.13 0.60 4.57
Health services 44.01 0.51 40.46 14.68 0.34
Auto repair & garages 22.56 0.30 14.89 59.31 2.94
Real estate 10.33 0.07 15.08 27.38 47.15
Local & suburban transit 70.68 1.24 2.94 25.13 0.00
Educational services 75.91 0.48 4.65 17.98 0.98
Hotels, rooming houses, etc. 1.69 0.06 27.26 2.86 68.13
Real estate 10.33 0.07 15.08 27.38 47.15
Building construction, contractors 22.37 0.07 31.03 1.51 45.02
Source: District of Columbia Department of Finance and Revenue and author's calculations.

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Table 7
Elasticity and Buoyancy Estimates and Growth Rates
for the District Sales and Use Tax
Year Elasticity Buoyancy* Growth Rates
1982 0.33 0.33 2.32
1983 1.97 1.96 9.23
1984 1.04 1.03 9.23
1985 1.93 1.96 11.71
1986 1.59 1.58 8.83
1987 0.93 0.92 5.73
1988 0.24 0.24 2.34
1989 0.31 1.53 9.76
1990 1.46 1.45 8.81
1991 0.08 -0.83 -3.21
1992 -0.41 -0.31 -2.01
1993 -3.51 -2.54 -7.33
1994 1.91 4.60 11.82
1995 6.36 2.26 5.91
1996 0.86 0.86 2.01
1982-1989 1.02 1.17 6.27
1982-1996 0.90 0.95 3.67
1990-1996 0.45 0.30 0.98
1989-1996 0.67 0.55 1.94
*Includes changes in base and rates.
Source: Author's calculations.

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Table 8
Personal Consumption Expenditures, 1979 and 1996
(Billions of Nominal Dollars)
1979 1996
Amount Distribution Amount Distribution
Total Expenditures 1594.0 100.0 5151.4 100.0
Durable Goods 213.9 13.4 632.1 12.3
Motor Vehicles and Parts 93.5 5.9 252.5 4.9
New Autos 49.3 3.1 81.4 1.6
Used Autos, Net 11.3 0.7 54.9 1.1
Other Motor Vehicles 16.6 1.0 77.3 1.5
Tires, Access. & Parts 16.3 1.0 38.9 0.8
Furniture & Household Equipment 82.3 5.2 254.4 4.9
Other Durables 38.2 2.4 125.2 2.4
Nondurable Goods 624.0 39.1 1545.1 30.0
Clothing and Shoes 101.2 6.3 264.4 5.1
Food and Beverages 324.2 20.3 772.3 15.0
Off Premise Consumption 221.3 13.9 485.9 9.4
Purchased Meals 96.7 6.1 277.6 5.4
Other Food 6.2 0.4 8.9 0.2
Gasoline and Oil 66.3 4.2 121.8 2.4
Fuel Oil and Coal 14.4 0.9 11.1 0.2
Other Nondurables 118.0 7.4 375.4 7.3
Services 755.6 47.4 2974.3 57.7
Housing 226.6 14.2 779.4 15.1
Household Operation 100.0 6.3 309.5 6.0
Transportation 59.1 3.7 204.5 4.0
User Operated 41.7 2.6 163.0 3.2
Local 4.8 0.3 9.7 0.2
Intercity 12.6 0.8 31.9 0.6
Medical Care 158.0 9.9 815.8 15.8
Other 212.0 13.3 865.0 16.8
Source: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts.

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Table 9
Estimated District of Columbia Sales Taxes by Income Group
$5,000
to
$9,999 		$10,000
to
$14,999		 $15,000
to
$19,999		 $20,000
to
$29,999 		$30,000
to
$39,999 		$40,000
to
$49,999 		$50,000
to
$69,999 		$70,000
and
over
Expenditures as a percent of income 174.62 143.31 128.59 109.65 94.82 85.83 83.67 64.91
Total sales tax (dollars) 264.96 392.29 526.44 688.69 774.46 941.95 1,171 1,632
Sales tax as a percent of income 3.54 3.17 3.06 2.80 2.25 2.13 2.01 1.55
Sales tax as a percent of expenditures 2.03 2.21 2.38 2.56 2.37 2.48 2.40 2.39
Taxable sales as a percent of consumption 37.66 39.88 42.16 45.18 42.10 43.24 41.99 41.32
Source: Consumer Expenditure Survey and author's calculations.

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Table 10
Percent of Area Retail Sales in Different Sub-Regions
DC as a Percent of MSA DC as a Percent of Selected Area
1982 1987 1992 1982 1987 1992
Total 14.23 11.57 10.01 16.12 13.38 11.86
Building Materials 6.82 5.39 3.49 8.73 7.30 4.73
General Merchandise 10.13 9.76 5.41 10.99 10.91 6.44
Food Stores 12.77 10.84 9.34 15.24 12.84 11.41
Auto Dealers 3.94 2.62 1.75 4.40 3.01 2.06
Gas Stations 10.57 6.91 8.62 12.57 8.46 10.89
Apparel 21.33 18.32 13.55 22.86 19.82 14.83
Furniture 14.29 10.89 9.28 15.44 11.92 10.31
Eating and Drinking 30.49 26.15 24.23 34.00 29.41 27.82
Drug 23.93 18.76 16.88 26.19 21.17 19.77
Miscellaneous 34.53 21.81 16.33 38.20 23.85 18.13
Source: U.S. Department of Commerce, Bureau of the Census, USA Counties, 1996.

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Table 11
Estimated Tax Collections
(Millions of Dollars)
Gasoline Beer Cigarette
1988 27.986 1.179 11.169
1989 28.772 1.181 10.727
1990 30.365 1.475 8.908
1991 30.178 1.447 13.268
1992 31.495 1.541 22.455
1993 35.155 1.567 23.633
1994 35.967 1.457 20.995
1995 33.870 1.427 21.645
1996 32.568 1.333 20.605
Buoyancy
1988-1996		 0.470 0.380 1.844
Source: District of Columbia Department of Finance and Revenue and author's calculations. Collections were estimated by multiplying the quantity sold by the tax rates.

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Table 12 Cigarette Tax Rate
Rank State Cents per
Pack of 20		 Rank State Cents per
Pack of 20
1 Washington 82.5 27 Arkansas 31.5
2 Massachusetts 76 28 Pennsylvania 31
3 Michigan 75 29 Alaska 29
4 Maine 74 30 Idaho 28
5 Oregon 68 31 Utah 26.5
6 District of Columbia 65 32 Delaware 24
7 Rhode Island 61 32 Kansas 24
8 Hawaii 60 32 Ohio 24
9 Arizona 58 35 Oklahoma 23
10 New York 56 36 New Mexico 21
11 Connecticut 50 37 Colorado 20
12 Minnesota 48 37 Louisiana 20
13 Illinois 44 39 Mississippi 18
13 North Dakota 44 39 Montana 18
13 Vermont 44 40 Missouri 17
13 Wisconsin 44 40 West Virginia 17
17 Texas 41 43 Alabama 16.5
18 New Jersey 40 44 Indiana 15.5
19 California 37 45 Tennessee 13
19 New Hampshire 37 46 Georgia 12
21 Iowa 36 46 Wyoming 12
21 Maryland 36 48 South Carolina 7
23 Nevada 35 49 North Carolina 5
24 Nebraska 34 50 Kentucky 3
25 Florida 33.9 51 Virginia 2.5
26 South Dakota 33
Source: Commerce Clearing House, State Tax Handbook.

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Table 13 Gasoline Tax Rates
Rank State Cents per
Gallon		 Rank State Cents
per Gallon
1 Connecticut 39 25 Utah 19
2 Rhode Island 28 28 Arkansas 18.5
3 Montana 27 29 Arizona 18
4 Nebraska 26.4 29 California 18
5 Idaho 25 29 Kansas 18
6 Hawaii1 24.8 29 Mississippi 18
7 Nevada 24 29 New Hampshire 18
7 Oregon 24 29 South Dakota 18
9 Wisconsin 23.7 35 Virginia 17.5
10 Maryland 23.5 36 Missouri 17
11 Delaware 23 36 New Mexico 17
11 Washington 23 37 Alabama 16
13 Colorado 22 37 Oklahoma 16
13 Ohio 22 37 South Carolina 16
15 North Carolina 21.7 40 Indiana 15
16 Massachusetts 21 41 Kentucky 15
17 West Virginia 20.5 41 Michigan 15
18 District of Columbia 20 41 Vermont 15
18 Iowa 20 45 Florida 12.5
18 Louisiana 20 46 Pennsylvania 12
18 Minnesota 20 47 New Jersey 10.5
18 North Dakota 20 48 Wyoming 9
18 Tennessee 20 49 Alaska 8
18 Texas 20 49 New York 8
25 Illinois 19 51 Georgia 7.5
25 Maine 19
1Gasoline tax rates vary by county.

Source: Commerce Clearing House, State Tax Handbook.

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Table 14
Potential Sales Tax Receipts, 1992
(Thousands of Dollars)
Source Amount Number of
states taxing
Attorneys 133,154 5
Public relations, management consulting 41,775 7
Gross income of construction contractors 18,038 11
Physicians 13,849 4
Engineers 7,819 5
Accounting and bookkeeping 6,745 5
Carpentry, painting, plumbing 4,824 13
Dentists 3,211 4
Travel agent services 2,254 3
Advertising agency fees 2,171 11
Barber shops and beauty parlors 1,512 6
Admission to cultural events 1,187 31
Private investigation (detective) services 1,115 13
Secretarial and court reporting services 929 9
Interior design and decorating 815 9
Sewer and refuse, industrial 729 13
Personal instruction(dance, golf, tennis) 574 7
Medical test laboratories 373 4
Construction service (grading, excavating) 290 11
Membership fees in private clubs 189 22
Laundry and dry cleaning services, coin-operated 126 8
Automotive washing and waxing 117 21
Automotive road service and towing services 99 15
Rental of films and tapes by theaters 71 45
Land surveying 32 7
Massage services 23 10
Carpet and upholstery cleaning 20 15
Source: Federation of Tax Administrators (1997b). U.S. Department of Commerce, Bureau of the Census,
1992 Economic Census CD-ROM, Report Series Disc 1H. Author's calculations.

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