Code of the District of Columbia

§ 47–1508. Exemptions.

(a) The following personal property shall be exempt from the tax imposed by this act [this subchapter]:

(1) The personal property of any corporation, and any community chest fund or foundation, organized exclusively for religious, scientific, charitable, or educational purposes, including hospitals, no part of the net earnings of which inure to the benefit of any private shareholder or individual; provided, that (A) the organization shall have first obtained a letter from the Mayor stating that it is entitled to the exemption, and (B) any personal property used for activities that generate unrelated business income subject to tax under section 511 of the Internal Revenue Code of 1986 shall not be exempt.

(2) Works of art owned by a nonresident of the United States, who is not a citizen of the United States, so long as the works of art were lent without charge to the trustees of the National Gallery of Art solely for exhibition without charge to the general public.

(3) Any motor vehicle or trailer registered according to subchapter I of Chapter of Title 50, except that special equipment mounted on a motor vehicle or trailer and not used primarily for the transportation of persons or property shall be taxed as tangible personal property as provided by law.

(3A) The personal property of any company subject to a gross receipts or distribution tax imposed by Chapter 25 or Chapter 39 of this title.

(4) Repealed.

(4A) Repealed.

(5) Repealed.

(6) Repealed.

(7) Beginning on May 1, 1997, the personal property of a wireless telecommunication company, as defined in § 47-3901(12), irrespective of whether the property is used or consumed in furnishing a service the charges from which are subject to Chapter 39 of this title. For purposes of this subparagraph, the term “personal property” shall not include office equipment or office furniture.

(8) The personal property of any digital audio radio satellite service company operating under a digital audio radio service by satellite license granted by the Federal Communications Commission; provided, that such company is subject to a gross receipts tax in force in the District for the period of time or for any portion of the time covered by any return required to be filed by Chapter 15 of this title.

(9)(A) The personal property of a qualified supermarket, as defined in § 47-3801(2), which is a development, as defined in § 47-3801(1), for the first 10 years for which the tax imposed by this chapter would otherwise be due.

(B) The exemption granted by subparagraph (A) of this paragraph shall apply only:

(i) During the time that the real property is used as a supermarket;

(ii) In the case of the development of a qualified supermarket on real property not owned by the supermarket, if the owner of the real property leases the land or structure to the supermarket at a fair market rent reduced by the amount of the real property tax exemption provided by § 47-1002(23); and

(iii) During the time that the supermarket development is in compliance with the requirements of subchapter X of Chapter 2 of Title 2.

(10) [Repealed].

(11) Systems using exclusively solar energy as defined in § 34-1431(14); provided, that, notwithstanding any other provision of law, the Chief Financial Officer shall transfer $120,000 from the certified revenues deposited in the Renewable Energy Development Fund established by § 34-1436 to the unrestricted fund balance of the General Fund of the District of Columbia and shall recognize the $120,000 as local funds revenue in fiscal year 2013 and in each subsequent fiscal year.

(12) Beginning October 1, 2016, cogeneration systems, which shall mean systems that produce both:

(A) Electric energy; and

(B) Steam or forms of useful energy (such as heat) that are used for industrial, commercial, heating, or cooling purposes.

(13)(A) Computer software, unless:

(i) The software is incorporated as a permanent component of a computer, machine, piece of equipment, or device, or of real property, and the software is not commonly available separately; or

(ii) The cost of the software is included as part of the cost of a computer, machine, piece of equipment, or device, or of the cost of real property on the books or records of the taxpayer.

(B) This paragraph shall not be construed to affect the value of a machine, device, piece of equipment, or computer, or the value of real property, or to affect the taxable status of any other property subject to tax under this title.

(a-1) Nothing contained within this act [this subchapter], nor any prior act of Congress relating to the District of Columbia, shall be deemed to impose upon any person, firm, association, company, or corporation a tax based upon tangible personal property owned and stored by the person in a public warehouse in the District of Columbia for a period of time no longer than is necessary for the convenience or exigencies of reshipment and transportation to its destination outside the District of Columbia.

(b) The Mayor shall issue rules necessary to carry out the provisions of subsection (a)(3)(A) and (B) [now subsections (a)(4) and (5) (repealed)] of this section in accordance with subchapter I of Chapter 5 of Title 2.