D.C. Budget Update: Estate Tax Threshold Lowered Pending Final Approval

On July 28 2020, the D.C. Council approved the "Budget Support Act" - a series of policy changes tied to the implementation of the city's 2021 budget. The proposed legislation includes a series of tax increases for the upcoming fiscal year (beginning October 1) in an effort to fund to a range of social services, such as the construction of affordable housing, grants and programs supporting disadvantaged businesses, and mental health treatment in schools.

While the council rejected a proposal to raise the income tax on high income earners, they voted to lower the threshold for imposing estate taxes from $5.6 million to $4 million for decedents who die after December 31, 2020, with inflation adjustment beginning in 2022. This change is expected to generate an estimated $1.8 million in tax revenue for the city.

The budget still needs Mayor Muriel Bowser’s signature and congressional approval to officially become law.

Share This Story, Choose Your Platform!

Subscribe

Receive our new blog articles in your email inbox.
  • This field is for validation purposes and should be left unchanged.

Categories

Recent Posts

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram