102 EXEMPT ORGANIZATIONS

102.1 The responsibility for establishing the right to exemption from the tax shall rest upon the organization claiming the exemption.

102.2 An organization shall not be exempt merely because it is not organized and operated for profit.

102.3 The granting of exempt status to any organization shall not relieve that organization of its responsibility to withhold tax from its employees as required by law.

102.4 Franchise tax exemptions shall only be valid for the period stated on the franchise tax exemption certificate. An exemption will only be allowed for a period during which the exemption certificate is unexpired for the entirety of the relevant filing period.

102.5 Exemptions Applications for Exempt Organizations

(a) An entity exempt from income and franchise taxes under D.C. Code Ann. § 47-1802.01 shall obtain from the Deputy Chief Financial Officer a certificate of exemption stating that the institution is entitled to the exemption. No exemption shall be allowed without a valid exemption certificate.

(b) Beginning with exemption certificates issued on or after August 15, 2018, exemption certificates issued to exempt organizations shall be valid only for a period of up to five years from the date issued.

(c) Exemption certificates issued to exempt organizations without expiration dates shall expire upon notice by the Office of Tax and Revenue.

(d) In order to receive an exemption certificate, an exempt organization shall follow the Office of Tax and Revenue’s electronic application process.

(e) All exemption applications filed by exempt organizations shall include, but are not limited to, the following information:

(1) Taxpayer ID Number;

(2) Name;

(3) Address;

(4) Sales Tax Account Number;

(5) NAICS Code;

(6) Federal Exemption Status;

(7) Proof of IRS exemption (e.g., IRS Determination Letter or Application for Recognition of Exemption);

(8) Organizational details; and

(9) Articles of Incorporation.

SOURCE: Commissioner's Order 56-1431, effective July 24, 1956, codified at 16 DCRR §§ 302.1 and 302.2; as amended by the Third Amendment to the Revenue Act of 1975 Act, effective April 9, 1976 (D.C. Law 1-61; 22 DCR 4283 (February 17, 1976)); as amended by Final Rulemaking published at 30 DCR 1922 (April 29, 1983); as amended by Final Rulemaking published at 30 DCR 3263 (July 1, 1983); as amended by Final Rulemaking published at 32 DCR 1354 (March 8, 1985); as amended by Final Rulemaking published at 65 DCR 8411 (August 10, 2018).