Thursday, September 4, 10 am – noon, DCAR July Public Policy MeetingDirector Tiffany Crowe of the Department of Licensing and Consumer Protection Joins the Public Policy Committee

DC Council one step closer to passing District’s FY22 budget; DCAR opposes income tax increase

On August 3, the D.C. Council held the final vote on the FY22 budget. The final step is passage of the Budget Support Act, the statutory piece of the budget, on Aug. 10. Key highlights include:

An income tax increase on higher-income individuals.
$24 million to help low-income first-time homebuyers with down payment and closing cost assistance.
Breaking up DCRA into a construction-oriented Department of Buildings and a consumer-oriented Department of Licensing and Consumer Protection.
$6.1 million for additional violence prevention programs.
$5 million for new Metropolitan Police Department recruits and cadets. (Mayor Bowser asked for $11 mil in police hires, but directed $6.1 million to violence prevention).
Providing housing for over 3,500 residents facing homelessness. (Which will be funded through the new tax increase on $250,000+).
$50 million in public housing repairs.
Pilot funding for the Generating Affordability in Neighborhoods (GAIN) Act, to allow for conversion of unaffordable housing into affordable housing using funded covenants.

Along with other business organizations, DCAR advocated that the Council carefully review this increase before proceeding, as it was added in at the last minute. DCAR believes that more thought and consideration should be given to this topic, and that the Tax Revision Commission would be the appropriate venue.

DCAR and GCAAR members have asked what remedies are on the table. While Mayor Bowser, who is against the increase, cannot line-item veto the tax, she can use her mayoral veto on the entire budget. However, this is unlikely as the Council would plausibly override the veto.