How B26-0749 changes current law

Compared against the D.C. Code as published AI-generated reading aid — verify against the official bill.

The bill establishes a Wealth Proceeds Tax on high-income households in the District of Columbia, creating a surcharge on certain types of investment income.

• Chapter 18 of Title 47

  (a) The table of contents is amended by inserting a new line to read as follows: “§ 47-1806.03a. Wealth Proceeds Tax.”.

  Adds a new entry in the tax code's table of contents for the Wealth Proceeds Tax.

• § 47-1806.03a

  For the purposes of this section, the following definitions shall apply: “(1) “District modified adjusted gross income” means federal modified adjusted gross income, subject to the adjustments set forth in § 47-1803.02(a)(1)(B)(ii). “(2) The term “federal modified adjusted gross income” shall have the same meaning as set forth in section 1411(d) of the Internal Revenue Code, subject to the following adjustments: “(A) Interest on U.S. obligations that District is prohibited from taxing under federal law shall be excluded; and “(B) Interest on obligations issued by state and local governments other than the District shall be included. “(3) “Threshold amount” means: ...

  Establishes definitions relevant to the Wealth Proceeds Tax, including adjustments to income calculations.

• § 47-1806.03a

  In the case of an individual, estate, or trust there is hereby imposed (in addition to any other tax imposed) for each taxable year beginning after December 31, 2025, a tax equal to 3 percent of the lesser of: “(1) Wealth proceeds for such taxable year, or “(2) Federal modified adjusted gross income for such taxable year, less the threshold amount.

  Imposes a 3% tax on high-income households based on their wealth proceeds or modified adjusted gross income.

• § 47-1806.03a

  For an individual who is not a resident of the District for the entire taxable year, the tax under this subsection must be calculated as if the individual is a resident of the District for the entire year...

  Specifies tax calculation for non-residents to ensure taxation as if they were residents.

• § 47-1806.03a

  All references to the Internal Revenue Code in this section shall refer to the code in effect as of January 1, 2026.

  Clarifies that references to the Internal Revenue Code are applicable as they existed on a certain date.

• § 1-301.47a

  The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required...

  Links the bill with the requirement for a fiscal impact statement, ensuring accountability for financial implications.