*Note, this only applies to Action Network partners based in Washington, DC*
Previously, we (Action Squared) received an exemption from sales taxes as a DC-based Qualified High Technology Company, so no one in DC using our tools was subject to sales tax. That changed in August 2019, when the District of Columbia Office of Tax and Revenue (OTR) announced that this exemption would terminate and, as of October 1, 2019, services provided by QHTCs (like Action Squared) are no longer exempt from sales and use tax.
So, short version: If your organization is based in Washington, DC and is a paid partner of Action Network, your payments to Action Network may now be subject to sales tax. The sales tax in Washington, DC is 6%, and we’re responsible for collecting that tax on your behalf and giving it to the DC government.
Your organization may still be exempt from paying sales tax, however. Read more about how to apply for sales tax exemption here.