Washington DC Mayor Vincent Gray has announced some tax changes that are designed to keep the districts budding tech scene building to scale. The changes he outlined recently will be formally announced to the city council on April 17th.
The first tax change is that District residents who invest in technology companies or take on equity as part of their employment would be subject to a 3 percent capital gains tax that they hold on investments they hold for two years or longer.
Gray’s other tax plan for DC is to do away with the borders for the tax technology zones. As it stands now there are certain areas within the district where companies have no income tax for five years from the time they register with city offices. Gray has decided to make this a city wide tax break
“We want to make sure it’s as easy as possible for tech entrepreneurs and business people to set up their business in the city without worrying about which streets are in and which streets are out,” said David Zipper, the city’s director of business development and strategy.
These tax breaks are designed to grow the number of early stage investors who reside in the city. and encourage startups to remain after they cash in.
source: Washington Post