“The Council gave final approval today to a budget package for fiscal year 2016 that builds in extensive efficiency savings and increases funding in important areas like affordable housing and homeless services without resorting to increases in the sales and parking taxes,” Mendelson stated. “Additionally, the final budget expedites tax relief for all District residents,” Mendelson continued, “moving the District toward final implementation of what will be the most progressive tax system in the nation.”
The expedited implementation of tax relief will allow residents to see tax relief for the current tax year, instead of unnecessarily delaying the tax relief. Originally approved in the Fiscal Year 2015 budget, the changes to the tax code are part of a comprehensive package of tax reforms that place particular emphasis on benefitting low and moderate income earners. The Fiscal Year 2016 Budget Support Act, as approved by the Council today, will allow for implementation of tax relief one year earlier for, among others, those in the middle income tax bracket and small businesses throughout the District. Contrary to suggestions made by some, the acceleration of tax relief does not limit flexibility for future budgets or jeopardize programming.