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 revenue loss of approximately $94.4 million for Fiscal Year 2025 and $657.8 million over the following four years, necessitating immediate action to protect the District's financial interests.

The resolution emphasizes three key reasons for the emergency action: the significant projected revenue decline, the insufficient time for the Council to evaluate which tax provisions to adopt, and the need for the Office of Tax and Revenue to prepare for the implementation of any 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 fiscal goals. The resolution is set to take effect immediately upon adoption after a single reading.