Food Trucks to Charge 10 Percent Sales Tax

D.C. – On Thursday, a bill was passed by the D.C. Council’s Committee on finance and Revenue that will force food trucks to charge the same 10 percent sales tax paid by brick and mortar restaurants. It is expected to take effect October 1.

A flat $1,500 annual fee is currently paid by food truck vendors, the same as street vendors near tourist spots. Many restaurant owners argue this is no longer a fair deal, due to the surge in street food popularity.

In January, Mayor Vince Gray proposed an overhaul of the food truck industry in the District. It hasn’t been taken up by the council and Councilwomen Muriel Bowser expressed concern over hitting food trucks with the tax.

Each licensed food truck operator who collects more than $375 in sales taxes on a quarterly basis will continue paying that sales tax to the city. Operators that collect less than that will instead pay the vending fees they pay now. Food truck vendors are concerned about how the taxes will be collected.