Advocacy

Potomac ASLA advocates to end sales tax on landscape architecture services in DC

Landscape architectural services have been subject to taxation in the District of Columbia since 1989 per this DC Code (§ 47–2001. Definitions. _ D.C. Law Library) and these DC Municipal Regulations. Landscape architects were not licensed in the District when this rule was published so landscape architectural design services were considered taxable in the same category of landscape construction and installation. Landscape architects became licensed professionals in the District in 2017 so the Potomac Chapter is advocating for the DC Council to remove the taxation on our services to better align with our industry peers and the majority of other states.

Key Facts

• No other licensed professional design services are taxed in the District. Engineers, architects, and interior designers are all licensed professionals whose services are not subject to taxation.
• Adjacent jurisdictions do not charge a tax on landscape architecture services.
• The 6% sales tax on landscape architectural services is collected by landscape architects and paid quarterly to the Office of Tax and Revenue. The tax reduces the amount of the overall project budget that can be spent on landscape architectural services and disadvantages local businesses.

Benefits

• Reduced costs of construction for property owners in the District.
• Landscape Architectural services will no longer be singled out among our peer industries.
• Reduced administrative and compliance costs for local landscape architects, many of which are small businesses.

The Potomac Chapter of ASLA wrote a draft bill, which exempts licensed landscape architects’ services from taxation.  We are thrilled to announce that the Landscape Architect Services Sales Tax Clarification Amendment Act of 2023 was introduced on April 27, 2023 by Councilmember Charles Allen, with Councilmembers Matthew Frumin and Robert C. White, Jr. as co-sponsors.  Click here for details.

How You Can Help

• The Potomac Chapter is looking for contributions to help offset the lobbying costs associated with bringing the Landscape Architect Services Sales Tax Clarification Amendment Act of 2023 to the DC Council. Our $25,000 goal ensures we can continue providing high value programming to our membership as we undertake this effort. All contributions are welcome, and we are suggesting the following amounts based on firm size:
  • < 5 employees: $500 – $1,500
  • 5-9 employees: $1,500 – $3,500
  • 10-20 employees: $3,500 – $5,000
  • 20+ employees: $5,000+

Procedures for Identifying and Acting on Other Issues

The Chapter has adopted ASLA’s Advocacy Checklist and will follow it when other issues are brought to the Chapter’s attention.  You can review the document here: ASLA Guide for Taking Policy Positions

Contact Christine Cotter, ccotter@potomacasla.org, with any questions on advocacy.