D.C. Budget Proposes Sales Tax Hike, Office Conversion Tax Break

District of Columbia Mayor Muriel Bowser unveiled a $21 billion budget plan Wednesday that would raise the city’s sales tax and institute other revenue-raising measures, including a delay in the planned increase in the earned income tax credit.

The fiscal 2025 plan avoids increases to property or income taxes even as the city braces for a slowdown in revenue and the end of federal pandemic relief funds, Bowser said.

The budget would also carry out plans for an office conversion tax credit as part of the mayor’s downtown revival program, which would reduce revenue by ...