B 26-0775

July 14, 2026
Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, D.C. 20004
Dear Secretary Howard,
Today, I am introducing the Meals Tax Relief Amendment Act of 2026, along with
Councilmember Brooke Pinto.
As the District continues to navigate economic uncertainty, supporting our local businesses has
never been more important. The District's unemployment rate remains the highest in the nation at
6.1%, and many restaurants continue to face rising operating costs and changing consumer
spending habits. Restaurants are more than places to eat; they are small businesses, employers,
community gathering spaces, and key drivers of neighborhood vitality and the District's
economy.
The District currently imposes a 10% sales tax on food and beverages prepared for immediate
consumption at restaurants, substantially higher than the District's general 6% sales tax. This
higher tax increases the cost of dining out for residents and visitors alike and can discourage
spending at local restaurants at a time when many establishments continue to recover and adapt
to changing economic conditions.
The Meals Tax Relief Amendment Act of 2026 aligns the tax on food and beverages prepared for
immediate consumption with the District's general sales tax rate. Specifically, the bill reduces the
portion of the meals tax imposed under D.C. Official Code § 47-2002 and D.C. Official Code §
47–2202 from 9 percent to 5 percent through September 30, 2027, and from 10 percent to 6
percent beginning October 1, 2027, when the District's general sales tax is scheduled to increase.
Because the separate 1 percent tax imposed under D.C. Official Code § 47-2002.02 and D.C.
Official Code § 47–2202.01 remains unchanged, the total tax on restaurant meals would be
reduced from 10 percent to 6 percent through September 30, 2027, and from 10 percent to 7
percent thereafter, maintaining parity with the District's general sales tax.
This legislation is intended to continue a broader conversation about how the District can
responsibly modernize its tax structure while strengthening economic growth. The Committee of
the Whole is expected to examine revenue options this fall, providing an opportunity to consider
revenue measures that could offset the fiscal impact of reducing the meals tax while supporting
the District's long-term economic competitiveness.
The Meals Tax Relief Amendment Act of 2026 is intended to support the District's restaurants
while providing meaningful tax relief to residents and visitors who choose to dine locally. By
lowering the cost of dining out, this legislation encourages spending at local businesses,
strengthens neighborhood commercial corridors, and helps build a more vibrant and competitive
local economy.
Sincerely,
Doni Crawford
Councilmember, At-Large
Council of the District of Columbia
1 _____________________________  __________________________
2 Councilmember Brooke Pinto  Councilmember Doni Crawford
3
4
5A BILL
6
7_________________________
8
9IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
10
11_________________________
12
13
14 To amend Chapter 20 of Title 47 of the District of Columbia Code to reduce the rate of tax on
15the gross receipts from sales of or charges for food or drink prepared for immediate
16consumption.
17
18BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
19 act may be cited as the “Meals Tax Relief Amendment Act of 2026”.
20Sec. 2. Title 47 of the District of Columbia Code is amended as follows:
21(a) Section 47-2002(a) is amended as follows:
22(1) Paragraph (3)(A) is amended by striking the phrase, “Food or drink prepared
23 for immediate consumption as defined in § 47-2001(g-1) or spirituous” and inserting the word
24 “Spirituous” in its place.
25(2) A new paragraph (3B) is added to read as follows:
26“(3B) The rate of tax on the gross receipts from sales of or charges for food or
27 drink prepared for immediate consumption as defined in § 47-2001(g-1) shall be 5.0% from the
28 effective date of the Meals Tax Relief Amendment Act of 2026 to September 30, 2026, and 6.0%
29 beginning on October 1, 2027, and continuing thereafter.”.
30(b) Section 47-2202(a) is amended as follows:
1
31(1) Paragraph (3)(A) is amended by striking the phrase, “Food or drink prepared
32 for immediate consumption as defined in § 47-2001(g-1) or spirituous” and inserting the word
33 “Spirituous” in its place.
34(2) A new paragraph (3D) is added to read as follows:
35“(3D) The rate of tax on the gross receipts from sales of or charges for food or
36 drink prepared for immediate consumption as defined in § 47-2001(g-1) shall be 5.0% from the
37 effective date of the Meals Tax Relief Amendment Act of 2026 to September 30, 2026, and 6.0%
38 beginning on October 1, 2027, and continuing thereafter.”.
39Sec. 3. Fiscal impact statement.
40The Council adopts the fiscal impact statement in the committee report as the fiscal
41 impact statement required by section 4a of the General Legislative Procedures Act of 1975,
42 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
43Sec. 4. Effective date.
44This act shall take effect after approval by the Mayor (or in the event of veto by the
45 Mayor, action by the Council to override the veto) and a 30-day period of congressional review
46 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
47 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).
2