Individuals that pay a total of $400 or more for merchandise, services, or rentals, and do not pay a sales tax, should file Form FR-329. Examples of purchases where sales tax may not be collected are those made via the internet, mail order catalog or out-of-state.
What is the Use Tax rate?
According to the DC instructions:
- “Merchandise, services and rentals are taxed at a rate of 6%.
- Alcoholic beverages sold for off-the-premises consumption are taxed at a rate of 10.25%.
- Purchases of catered food or drinks are taxed at a rate of 10%.
- Rental vehicles are taxed at a rate of 10%.”
The DC consumer use tax is reported on Form FR-329. This form is not included with your individual tax return. This Form is to be filed annually and can be located at MyTax.DC.gov. The deadline to file this form is generally the same as the tax return filing deadline.
For additional information, see DC State Instructions