(Washington, DC) The Office of Tax and Revenue (OTR) announced today that the DC Court of Appeals has issued an opinion* reversing the trial court decision in Kenneth Bender, et al v. the District of Columbia. The appeals court rejected a March 14 decision by a DC Superior Court judge that indicated that the District could not collect an unincorporated business franchise tax on the net profits of real estate partnerships conducting business in the District, to the extent that those profits belonged to partners who were nonresidents of the District. The taxpayers named in the suit have 14 days to file a motion requesting a rehearing before the court.

“We are gratified that the Court of Appeals has vindicated the District,” said Sherryl Hobbs Newman, deputy chief financial officer for tax and revenue. “This is a victory for all District residents.”

OTR will not act on any claims for refunds until the Court of Appeals decision becomes final. For more information, contact OTR’s Customer Service Center at (202) 727-4TAX (4829).