City Desk

D.C. Sales Tax to Drop to 5.75 Percent on Oct. 1

Here's some good news to end your week with: Starting Oct. 1, the District sales and use tax will drop from 6 percent to 5.75 percent.

The higher tax rates on food and drinks at restaurants (10 percent), tobacco (12 percent), and some rentals (14.5 percent) will remain the same. The tax on medical marijuana will remain at 6 percent.

The D.C. Council voted to slash the tax rate back in June. The council increased the rate to 6 percent in 2009 as the city struggled to plug a $660 million budget hole.

Photo by zzzack via Flickr/Creative Commons Attribution 2.0 Generic

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