Bill Would Restrict DC’s Authority to Raise Taxes and Fees

The House Committee on Oversight and Government Reform is scheduled to consider legislation that would restrict the District of Columbia's ability to impose or increase taxes and fees without congressional approval.

The DC Taxing Authority Review Act (H.R. 9720), introduced by Committee Chair James Comer, would require Congress to approve any DC legislation establishing or increasing a tax or fee before it can take effect.

The bill follows recent DC Council debate over two revenue proposals: a new Business Activity Tax and an additional tax on investment income earned by high-income households. Neither proposal was included in the District's recently approved fiscal year 2027 budget, though both could be reconsidered this fall as potential sources of additional revenue.

The committee is scheduled to mark up the bill on Wednesday. The Association will continue to monitor the legislation and provide updates as it moves through the legislative process.