D.C. Mun. Regs. tit. 10, r. 10-B2219

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 10-B2219 - PAYMENTS TO BUSINESSES IN LIEU OF ACTUAL EXPENSES

2219.1

Payment may be made to an owner of a displaced business in place of actual expenses and property losses as provided in §§ 2216 through 2218.

2219.2

Payments in place of actual expenses shall be equal to the average annual net earnings of the business; Provided, that no payment shall be less than two thousand five hundred dollars ($2,500) or more than ten thousand dollars ($10,000).

2219.3

For the purposes of this subsection, the term "average annual net earnings" shall mean one-half (1/2) of the net earnings of the business, before federal or other income taxes, during the two (2) taxable years immediately preceding the taxable year in which the business is relocated. The term shall also include any compensation paid by the business to the owner, to his or her spouse, or to his or her dependents during the two (2) year period.

2219.4

Payments in place of expenses under this section shall be made only if the following conditions apply:

(a) The business cannot be relocated without a substantial loss of its existing patronage, which shall be determined only after consideration of all pertinent circumstances, including, but not limited to, the following factors:

(1) The type of business;

(2) The nature of the clientele; and

(3) The relative importance of the present and proposed location and the availability of a suitable replacement location;

(b) The business is not part of a commercial enterprise having at least one (1) other establishment which is not being acquired by any governmental agency and which is engaged in the same or similar business; and

(c) The business contributes materially to the income of the owner.

2219.5

If the owner of the business affected can show that the business was in operation for twelve (12) consecutive months during the two (2) taxable years prior to the taxable year in which it is required to relocate, had income during that period, and is otherwise eligible, payment in place of actual moving expenses shall be made to the owner of that business.

2219.6

If the business was in operation for twelve (12) consecutive months or more but was not in operation during the entire two (2) preceding taxable years, the payment shall be computed by dividing the net earnings by the number of months the business was operated and multiplying that number by twelve (12). For this purpose, a taxable year shall be considered the twelve (12) month period used by the business in filing income tax returns.

2219.7

To be entitled to a payment in place of moving expenses, the owner of a business shall substantiate the claimed net earnings by furnishing documents such as copies of District or federal tax returns for the tax years in question, certified financial statements, or sworn affidavits stating his or her net earnings. The unsubstantiated statement of an owner alone shall not suffice for this purpose.

2219.8

The Relocation Office shall have the right to review the records and accounts of the business.

D.C. Mun. Regs. tit. 10, r. 10-B2219

§ 502(d) of the Relocation Regulations, Regulation No. 73-4, 19 DCR 599, 615 (February 21, 1973)