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D.C. Sales Tax Will Go Down On Tuesday

It might sound unlikely or unbelievable, but it's true: D.C. is decreasing a tax.

Starting tomorrow, the sales tax in D.C. will drop a quarter-point to 5.75 percent. The move comes in the wake of back-to-back budget surpluses and reverses an increase of the same amount passed by the D.C. Council in 2009, when the city faced a budget gap.

With the 5.75 percent tax going into effect tomorrow, D.C. will have the lowest sales tax in the region. Maryland charges six percent, while areas in Northern Virginia charge five percent in state sales tax and a one percent local tax.

According to the D.C. Chief Financial Officer, the new rate will not apply to food and drinks purchased for immediate consumption (10 percent), parking (18 percent), tobacco products (12 percent), hotels (14.5 percent), and medical marijuana (six percent).

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