What it is

OTR is the District of Columbia agency that administers DC tax laws and regulations. It covers individual income taxes, business taxes such as franchise and sales and use tax, real property assessment and billing, and the Recorder of Deeds. Its online system, MyTax.DC.gov, is where taxpayers file, pay and manage accounts.

What it offers founders

  • New business registration: new businesses register for DC taxes by completing the FR-500 New Business Registration through MyTax.DC.gov. You will need an EIN or SSN, your legal entity type, business and sales locations, officer details and formation documents.
  • Certificate of Clean Hands: required when seeking DC licenses, permits, government contracts or grants. Applicants can be denied if they owe more than $1,000 to OTR or DOES or have unfiled returns. Most taxpayers can run the check instantly in MyTax.
  • Sales and use tax: the general rate is 6 percent, with a planned increase to 7 percent postponed through September 30, 2027. Returns are filed electronically through MyTax.DC.gov.
  • Payments and installment agreements: payment options and payment plans for businesses with balances due.
  • Taxpayer Advocate: an office that helps taxpayers resolve problems with OTR.

Who it is for

Any business operating in DC, from a solo founder forming an LLC to a venture-backed company with DC employees or sales, will deal with OTR. Founders outside DC may also need it for a Certificate of Clean Hands when bidding on District contracts or grants.

How to engage

The registration sequence on the New Business Registration page is: register with the Department of Licensing and Consumer Protection (DLCP) if required, complete the FR-500 on MyTax.DC.gov, return to DLCP for your business license, and contact the Department of Employment Services if you have a withholding account. The Customer Service Center is at 1101 4th Street SW, Suite W270, with walk-in hours of 9 am to 4 pm and call center hours of 8:15 am to 5:30 pm at (202) 727-4829. In-person visits require an appointment. Other numbers are listed on the Contact OTR page.

Why it matters in the DMV ecosystem

Registering with OTR is a required step for a DC business, and a clean tax record is a prerequisite for DC licenses, permits, grants and contracts. Getting set up on MyTax.DC.gov early helps founders qualify for programs offered by other District agencies.