The Meals Tax Relief Amendment Act of 2026 aims to reduce the tax burden on food and beverages prepared for immediate consumption at restaurants in the District of Columbia. Currently, the meals tax is set at 10%, significantly higher than the general sales tax of 6%. This bill proposes to lower the meals tax to 5% from the effective date of the act until September 30, 2027, and then to 6% starting October 1, 2027, aligning it more closely with the general sales tax rate. The legislation also maintains a separate 1% tax that remains unchanged, resulting in a total tax reduction on restaurant meals from 10% to 6% through September 30, 2027, and to 7% thereafter.

The bill includes amendments to D.C. Official Code 47-2002 and 47-2202, specifically altering the language regarding the definition of food or drink prepared for immediate consumption and establishing the new tax rates. By providing this tax relief, the act aims to support local restaurants, encourage consumer spending, and enhance the overall economic vitality of the District, particularly as it continues to recover from economic challenges. The Council is also expected to explore additional revenue options to offset the fiscal impact of this tax reduction while promoting long-term economic competitiveness.