(Washington, DC) The District of Columbia Office of Tax and Revenue (OTR) today announced tax guidelines for individuals and businesses who will be renting properties to out-of-town visitors for the events surrounding Inauguration Day, January 20, 2009. These Sales and Use and Unincorporated Franchise tax guidelines apply to the rental of houses, English basements, condominiums, apartments, and like dwellings.

Sales and Use: The District’s sales tax, at the rate of 14.5 percent, applies to any charges for lodging regularly furnished to transients. The tax is not applicable to charges for lodging if it is provided on a one-time basis for the Inauguration celebration.

Unincorporated Franchise Tax: Individuals and unincorporated businesses operating in the District of Columbia with gross income from business activities of more than $12,000 per year, including any receipts for transient accommodations, are required to file an annual D-30 Unincorporated Business Franchise Tax return by April 15th of each year.

District residents renting transient accommodations for the Inauguration celebration who are not required to file the D-30 are also not required to report their receipts as gross income for District of Columbia income tax purposes to the extent they are not required to report such income for federal income tax purposes.

For additional information regarding these filing requirements, call OTR’s Customer Service Center at (202) 727-4TAX (4829).