May 27, 2025
Client Alert: Nonprofit Charities: A Short Time Frame to Obtain DC Sales and Hotel Tax Refund
As a result of the Superior Court of the District of Columbia’s (Tax Division) recent ruling that a District of Columbia law unconstitutionally denied out-of-state charities a hotel and sales tax exemption, eligible nonprofit organizations are entitled to obtain a refund of the sales and hotel taxes paid for meetings or events held in DC since December 12, 2016, plus interest. With hotel and sales tax rates currently at 14.95% and 6% respectively, the amount of a refund could be significant. However, the deadline to submit a claim to obtain a refund of taxes paid is June 6, 2025.