D.C. Master Business License Scrapped by City Council

In early June, the Washington D.C. City Council voted to repeal a program that would have required all business proprietors within D.C. city limits to obtain a "master business license." The VSCPA, along with the Greater Washington Society of CPAs (GWSCPA) and Northern Virginia VSCPA Chapter, represented members in and around the D.C. metropolitan area by keeping them up-to-date on the latest developments and meeting with D.C. representatives to communicate issues and concerns.

Earlier this year, the D.C. Department of Consumer and Regulatory Affairs (DCRA) began implementing the master business license program, which was mandated in a 1998 D.C. City Council law. The program required all businesses that generate more than $2,000 in annual gross receipts in D.C. to obtain a license. These businesses included the self-employed, for-profit companies, nonprofits, individuals, organizations and associations. The law would apply to all such companies or individuals regardless of location.

The wide-ranging legislation, therefore, would have required CPAs who work in Northern Virginia or other suburban areas and have a client within the District to obtain a license. In addition, any company around the world meeting the criteria would also be required to register.

GWSCPA Executive Director Robert Uttenweiler praised Virginia CPA's advocacy efforts. "The VSCPA's and Northern Virginia Chapter's involvement helped raise the awareness of the D.C. City Council as to the importance of this issue," Uttenweiler said. "It made a significant difference."

"The VSCPA participated in the master business license task force to represent our members' concerns regarding major flaws in the system," said VSCPA Government Affairs Manager Erin Collins. "Implementation of the law's requirements would have been very difficult, if not impossible." The D.C. City Council finally agreed that the program's flaws were irreversible, and voted 7 to 6 to scrap the plan.

D.C. City Council procedures, however, dictate that the council must review each bill twice. Though there is a slight possibility someone could change their vote and pass the bill upon second reading, the VSCPA and other advocates are confident the bill will not be reinstated. "The D.C. council vote was not the absolute last step in scrapping the master business license, but it was the most important first step for that process," Uttenweiler said.

Several CPAs from the Northern Virginia area, including Art Auerbach, were instrumental in communicating the master business license issue to VSCPA members as well as voicing concerns with District council members.