D.C. Mun. Regs. tit. 9, r. 9-4101
Current through Register Vol. 71, No. 49, December 6, 2024
Rule 9-4101 - MULTISTATE TAX CREDIT4101.1 To prevent actual multi-state taxation of the sale of toll telecommunication service under the Act, the taxpayer, upon proof that it paid a properly due excise, sales, use, or gross receipts tax in another jurisdiction on a sale that is subject to taxation under this section, shall be allowed a credit for the amount paid against the tax, but in no event shall the credit permitted exceed the tax imposed on the sale under the Act. Example: The taxpayer is able to show that excise and sales tax is required to be paid and has been remitted to four (4) states on gross charges subject to the tax imposed under this section as shown in Columns (1) through (5). A computation of the maximum allowable credit in this example is shown in Column (6).
4101.1(Continued)
(1) | (2) | (3) | (4) | (5) | 6) |
State Gross | Type | Tax | Amount of | Credit |
Name | Charges | Tax | Rate | Tax Paid | Claimed |
(1) | $100.000 | Sales | 8% | $8,000 | $ 6,700 |
(2) | 100,000 | Sales | 8% | 8,000 | 6,700 |
(3) | 100,000 | Sales | 4% | 4,000 | 4,000 |
(4) | 100,000 | Excise | 4% | 4,000 | 4,000 |
Total Credit Claimed for the Month | $21,400 |
4101.2 A taxpayer may be allowed an alternate method for reporting the credit upon showing to the satisfaction of the Mayor that it does not have the capability through reasonable measures to determine the credit in the manner provided in this section.4101.3The showing shall be made by a petition to the Mayor which includes the following information:
(a) The factual basis for the inability to determine the credit through reasonable measures in accordance with this section; and(b) An alternate method of reporting the credit that the taxpayer believes is reasonable and equitable.4101.4 Until such time as a separate line for reporting the credit appears on the monthly return, the credit shall be subtracted from the "Total Tax Due" line on the return, and the net amount shall be entered on the line designated "Total Amount Due" together with any late charges due as computed on net tax.4101.5The taxpayer shall indicate that a credit has been subtracted by writing or typing the words "credit claimed" on the line designated "Total Tax Due."
D.C. Mun. Regs. tit. 9, r. 9-4101
Final Rulemaking published at 36 DCR 2478, 2483 (April 7, 1989)