The proposed resolution, titled the D.C. Income and Franchise Tax Conformity and Revision Emergency Declaration Resolution of 2025, aims to address the need for the District of Columbia to decouple certain provisions of its tax code from the recently enacted federal One Big Beautiful Bill Act (OBBBA). Signed into law on July 4, 2025, the OBBBA includes numerous tax-related provisions that, if not addressed, would automatically affect the District's tax code due to its rolling conformity status. The resolution highlights the potential financial impact, estimating a revenue loss of $94.4 million for Fiscal Year 2025 and a total of $657.8 million through Fiscal Year 2029, necessitating immediate action to protect the District's fiscal health.

The resolution outlines three key reasons for the emergency action: the significant revenue loss projected, the insufficient time for the Council to evaluate which tax provisions should be adopted, and the need for adequate preparation by the Office of Tax and Revenue to implement any necessary changes. By declaring an emergency, the Council seeks to allow for a more thorough analysis of the OBBBA's tax provisions while ensuring that the District's tax code remains stable and aligned with its financial goals. The resolution is set to take effect immediately upon adoption after a single reading.