Mr. MCMILLAN, from the committee of conference, CONFERENCE REPORT [To accompany H. R. 16361] The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 16361) to provide additional revenue for the District of Columbia, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment insert the following: That this Act may be cited as the "District of Columbia Revenue Act of 1968". TITLE I-FEDERAL PAYMENT AUTHORIZATION SEC. 101. Section 1 of article VI of the District of Columbia Revenue Act of 1947 (D.C. Code, sec. 47-2501a) is amended (1) by striking out "June 30, 1968" and inserting in lieu thereof "June 30, 1969", and (2) by striking out "$70,000,000" and inserting lieu thereof "$90,000,000". TITLE II-AMENDMENTS TO THE DISTRICT OF COLUMBIA INCOME AND FRANCHISE TAX ACT OF 1947 SEC. 201. Section 3 of title VI of the District of Columbia Income and Franchise Tax Act of 1947 (D.C. Code, sec. 47-1567b(a)) is amended to read as follows: "SEC. 3. IMPOSITION AND RATES OF TAX.-In the case of a taxable year beginning after December 31, 1967, there is hereby imposed on the taxable income of every resident a tax determined in accordance with the following table: "If the taxable income is: Not over $1,000. Over $1,000 but not over $3,000.. The tax is: 2% of the taxable income. $20 plus 3% of excess over $1,000. SEC. 202. (a) Section 2 of title VII of such Act (D.C. Code, sec. 47-1571a) is amended by striking out "5 per centum" and inserting in lieu thereof "6 per centum". (b) Section 3 of title VIII of such Act (D.C. Code, sec. 47-15746) is amended by striking out "5 per centum" and inserting in lieu thereof "6 per centum". SEC. 203. (a) Section 7(a) (4) of title XII of such Act (D.C. Code, sec. 47-1586ƒ(a)(4)) is amended to read as follows: "(4) EMPLOYERS.-Every employer required to deduct and withhold tax under this article shall make a return of, and pay to the District, the tax required to be withheld under this article for such periods and at such times as the District of Columbia Council may prescribe." (b) Section 1(b) of title XIII of such Act (D.C. Code, sec. 47-1589 (b)) is amended to read as follows: "(b) FAILURE TO FILE EMPLOYER'S RETURN.-In the case of any employer "(1) who pursuant to this article is required to withhold taxes on wages, make a return of such taxes, and pay to the District the taxes required to be withheld pursuant to this article, and "(2) who fails to withhold such taxes, make such return, or pay to the District the taxes required to be withheld pursuant to this article, there shall be imposed on such employer a civil penalty (in addition to any criminal penalty provided for in this article) of 5 per centum of the amount required to be shown as tax on such return if the failure is for not more than one month, with an additional 5 per centum for each additional month or fraction thereof during which such failure continues, not exceeding 25 per centum in the aggregate." SEC. 204. (a) The amendment of any provision of the District of Columbia Income and Franchise Tax Act of 1947 shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause before such amendment; but all rights and liabilities under such Act shall continue, and may be enforced in the same manner and to the same extent, as if such amendment had not been made. (b) All offenses committed, and all penalties incurred, under any provision of law hereby amended, may be prosecuted and punished in the same manner and with the same effect as if this title had not been enacted. SEC. 205. The amendments made by sections 201 and 202 of this title shall be applicable to taxable years beginning after December 31, 1967. The amendments made by section 203 of this title shall take effect on the date of enactment of this Act. TITLE III-AMENDMENTS TO THE DISTRICT OF COLUMBIA SALES TAX ACT AND THE DISTRICT OF COLUMBIA USE TAX ACT SEC. 301. Section 107 of the District of Columbia Sales Tax Act (D.C. Code, sec. 47-2601, par. 7) is amended by striking out ": Provided, however, That the word 'food' shall not include spiritous or malt liquors and beer" and inserting after the period at the end of such section the following new sentence: "The word 'food' shall not include spiritous or malt liquors, beer, or wines." SEC. 302. Subsection (a) of section 114 of the District of Columbia Sales Tax Act (D.C. Code, sec. 47-2601, par. 14(a)) is amended by adding at the end thereof the following new paragraph: "(7)(A) The sale of or charges to subscribers for local telephone service. The inclusion of such sales and charges in the definition of the terms ‘retail sale' and 'sale at retail' shall not authorize any tax to be imposed under this title on so much of any amount paid for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment as is properly attributable to such installation. "(B) The term 'local telephone service' means "(i) the access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, and "(ii) any facility or service provided in connection with a service described in clause (i) of this subparagraph. The term local telephone service' does not include any service which is a 'toll telephone service' or a 'private communication service' as defined in subparagraphs (C) and (D). "(C) The term 'toll telephone service' means "(i) a telephonic quality communication for which (a) there is a toll charge which varies in amount with the distance and elapsed transmission time of each individual communication and (b) the charge is paid within the United States, and "(ii) a service which entitles the subscriber, upon payment of a periodic charge (determined as a flat amount or upon the basis of total elapsed transmission time), to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located. "(D) The term 'private communication service' means "(i) the communication service furnished to a subscriber which entitles the subscriber "(a) to exclusive or priority use of any communication channel or groups of channels, or "(b) to the use of an intercommunication system for the subscriber's stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in subparagraph (B) or (C), "(ii) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of, channels, or systems described in clause (i) of this subparagraph, and 66 "(iii) the channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system, except that such term does not include any communication service unless a separate charge is made for such service." SEC. 303. Section 114(b) (2) of the District of Columbia Sales Tax Act (D.C. Code, sec. 47-2601, par. 14(b) (2)) is amended to read as follows: "(2)(A) Sales of transportation and communication services other than sales of local telephone service. 66 (B) Sales of local telephone service rendered by means of a coinoperated telephone available to the public; except that where such coinoperated telephone service is furnished for a guaranteed amount, the amounts paid under such guarantee plus any fixed monthly or other periodic charge shall be subject to the tax imposed on local telephone service by this title." SEC. 304. Section 125 of the District of Columbia Sales Tax Act (D.C. Code, sec. 47-2602) is amended to read as follows: "SEC. 125. A tax is imposed upon all vendors for the privilege of selling at retail certain tangible personal property and for the privilege of selling certain selected services (defined as 'sales at retail' in this title). The rate of such tax shall be 4 per centum of the vendor's gross receipts from the sale of such tangible personal property and services, except that the rate of tax with respect to sales or charges for any room or rooms, lodgings, or accommodations, furnished to transients by any hotel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients, shall be 5 per centum of the gross receipts from such sales or charges, and the rate of tax with respect to sales of food for human consumption off the premises where such food is sold shall be 1 per centum of the gross receipts from such sales." SEC. 305. (a) Section 128 of the District of Columbia Sales Tax Act (D.C. Code, sec. 47-2605) is amended (1) by adding after paragraph (c) the following new paragraph: "(d) Sales of materials and services to the printing clerks of the majority and minority rooms of the House of Representatives for use in the operation of such rooms, and sales of materials and services made by such clerks in connection with the operation of such rooms."; (2) by amending paragraph (i) to read as follows: "(i) Sales of food, beverages, and other goods made to any person for use in the operation of the majority and minority cloakrooms of the House of Representatives and sales of such food, beverages, and other goods made by such person in connection with the operation of such cloakrooms."; and (3) by redesignating paragraph (r) as paragraph (q). (b) Paragraph (d) of such section 128, added by paragraph (1) of subsection (a) of this section, shall apply with respect to sales of materials and services made on or after January 1, 1961. SEC. 306. Section 201(b) (2) of the District of Columbia Use Tax Act (D.C. Code, sec. 47-2701, par. 1(b) (2)) is amended to read as follows: "(2) Sales of transportation and communication services other than sales of local telephone service." |