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Bowser Proposes Sales Tax Increase In 2025 Budget For Metro, Public Safety & Downtown Developments

todayApril 5, 2024 1

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DCPS Budget Investments and Launch of a Guide to Prepare Students for Graduation, College, and Career

Source: The Washington Post / Getty

The proposed budget for fiscal year 2025, unveiled by D.C. Mayor Muriel Bowser, presents a comprehensive strategy titled “Fair Shot: Strategic Investments and Shared Sacrifice.” It aims to address challenges such as slower revenue growth and increased operating costs while prioritizing long-term growth, public safety, education, and downtown revitalization.

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Key elements of the budget include a sales tax increase, with the general rate rising to 6.5% in fiscal year 2026 and 7% in fiscal year 2027, up from the current 6%. Additionally, the plan entails cuts to various District programs, such as Circulator service, the Early Childhood Development Fund, job training, and a truancy program named Show Up, Stand Out.

Also See: DC Council Set To Vote On $500M For Capital One Arena Renovation

To bolster revenue, the proposal suggests adding a 1-3% tax on electric vehicles, increasing employer contributions to the paid family leave program, and implementing an 80-cent-per-night hotel room fee to fund training for 911 call center personnel. The budget also includes measures to streamline government operations, including the elimination of 407 government positions and trimming administrative spending.

Despite financial constraints, Bowser emphasized that the budget maintains balance without raising commercial or residential property taxes or income taxes. The comprehensive document spans 400 pages and outlines Bowser’s vision for fiscal year 2025, constituting her most challenging budget to date.

The total budget encompasses $21 billion in operating funds and $11.8 billion in capital improvement funds, as stated in Bowser’s letter to D.C. Council Chair Phil Mendelson. Following Bowser’s presentation, the council will conduct hearings, review agencies, and make adjustments to the budget. Once the council passes its version, the mayor can either sign or veto it before undergoing a 30-day federal review.

source: The DMV Daily

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