(Photo by Marco Verch)
A number of taxes are increasing in D.C. on Monday, the first day of the 2019 fiscal year.
The general sales tax is increasing by a quarter of a percentage point to 6 percent, and the tax charged on beer, malt liquor and wine sold at stores will be increasing by the same amount, to 10.25 percent. Proceeds from both those tax increases—along with a higher commercial tax rate for some properties—will help cover D.C.’s $178.5-million annual contribution to the dedicated funding to fix and maintain Metro.
Taxes on cigarettes are also increasing, from $2.94 up to $4.94 for a pack of 20. That would put D.C. as the jurisdiction with the highest cigarette taxes in the country when compared to the states—Maryland charges $2 a pack, Virginia 30 cents—but still below places like New York City ($5.85 in taxes per pack) and Chicago ($6.16 in taxes).
The legal age to purchase tobacco products is also going up, from 18 to 21, and the tax rate on other tobacco products like e-cigarettes is jumping from 60 percent to 96 percent of wholesale sales.
Another tax increase of sorts taking effect this week will impact the city’s estate tax. Starting Monday, the estate tax exemption will be $5.6 million, down from the $11.2 million that applied to D.C. as part of the Republican tax overhaul that took effect earlier this year. With the exemption decreasing, high-income residents will be able to shield less of their estates from taxation.
One tax that is going away altogether is the sales tax on feminine hygiene products like pads, tampons and menstrual cups. A bill was passed by the D.C. Council to repeal the so-called “tampon tax” in 2016, but it wasn’t funded by Mayor Muriel Bowser until she proposed her 2019 budget earlier this year. A provision of the bill that would similarly have exempted diapers was not funded. In Maryland, feminine hygiene products are considered medical supplies and are not taxed.
This story originally appeared on WAMU.
Martin Austermuhle