District of Columbia Form FR-164: Who Qualifies, Filing, and Taxes Covered

DC Form FR-164 is the Application for Exemption that nonprofits and other qualifying organizations file with the DC Office of Tax and Revenue to be treated as exempt from District income and franchise tax, sales and use tax, and personal property tax. You file it online through MyTax.DC.gov after gathering your IRS determination letter and your organizing documents.¹ Federal 501(c) recognition alone is not enough. The District requires its own approval before it treats your organization as exempt.²

Who Qualifies to File

The eligible categories under DC Code § 47-1802.01 track the federal 501(c) categories closely. If the IRS has recognized your organization as a 501(c)(3), a civic league or social welfare organization, a labor, agricultural, or horticultural group, a business league or chamber of commerce, a fraternal beneficiary society operating under the lodge system, a title-holding corporation, or a federal instrumentality, you can apply.³

You can also file before the IRS has ruled, as long as you have applied federally and can tell OTR when you expect the determination letter.²

Which DC Taxes the Exemption Covers

FR-164 is a single form, but it covers three separate DC taxes. Not every applicant qualifies for all three.

Income and Franchise Tax

This is the broadest exemption and reaches every 501(c) category listed in the statute. Unrelated business income stays taxable, the same way it does federally.³

Sales and Use Tax

Much narrower. Only “semipublic institutions” qualify, which in practice means 501(c)(3) organizations, and the organization must be physically located in the District.² A charity that operates entirely from Virginia or Maryland cannot get a DC sales tax exemption certificate, even with 501(c)(3) status.

Personal Property Tax

Also limited to semipublic institutions, and only for property the organization owns and uses for its exempt purposes. Property used to generate unrelated business income stays taxable.¹

What to Gather Before You File

Have every supporting document ready before you start. Missing paperwork is the most common reason applications stall.²

Your most recent IRS determination or ruling letter. If you have not received one yet, note the date you expect it.
If you incorporated in DC, a copy of your Certificate of Incorporation from the Department of Licensing and Consumer Protection (formerly DCRA), Corporations Division.
If you are unincorporated, your constitution, articles of association, declaration of trust, or other founding document, plus any amendments.
If you incorporated outside DC, a photocopy of the Certificate of Authority issued by the DC Corporations Division.
If DC has previously recognized you as exempt, a copy of that earlier exemption letter or certificate.
If you are requesting sales tax exemption, proof of a physical DC location: a lease, a DC Occupancy Permit, or similar documentation.

One requirement catches people out. If your organization has never registered with OTR before, you also need to file Form FR-500, the Combined Registration Application for Business DC Taxes, alongside FR-164. FR-500 opens your tax account with the District; FR-164 then asks that the account be treated as exempt.²

Filling Out the Form

Answer every field. Blank spaces slow the review down. A few sections deserve extra care:

Enter your organization’s legal name and FEIN exactly as they appear on the IRS determination letter.
Use a street address. The form does not accept a P.O. Box as the primary address.
For federal exemption status, give the date the IRS recognized you and the section you were recognized under, or, if the IRS has not yet ruled, the date you filed federally.
Under “purpose,” check every box that applies (religious, charitable, educational, scientific, library, hospital, or other) and describe anything you mark as “other.”
List every applicable source of income: donations, dues, grants, interest, rents, business operations, and so on.
If you own tangible personal property in DC, list the location, type, and total cost. This section drives the personal property tax exemption.

The form also asks yes/no questions about compensation of officers, activities outside your stated exempt purpose, and whether you have filed all required federal returns. Answers that don’t line up with your IRS filings will draw additional review, so be consistent.

Filing Through MyTax.DC.gov

OTR directs nonprofits to file FR-164 online through MyTax.DC.gov.¹ Create an account if you don’t have one, find FR-164 under the exemption requests section, complete the fields, upload your supporting documents, and submit. You’ll get a confirmation.

Paper filing is still available. The form instructions give the mailing address as Office of Tax and Revenue, P.O. Box 556, Washington, DC 20044-0556, Attn: Exempt Organizations.² Include every supporting document if you go this route. Online is faster.

After You File

For income and franchise tax, the exemption generally takes effect on the date OTR receives your completed FR-164. Once the application is approved, OTR issues a certificate of exemption.¹ You present that certificate to vendors for tax-free purchases; the vendor records the date, your organization’s name, and the certificate number for each exempt sale.

If OTR finds gaps or inconsistencies, expect a request for more documentation through MyTax.DC.gov or by mail. Respond quickly. An incomplete application left sitting can be denied. When something changes later, such as your address, officers, or activities, update your information through MyTax.DC.gov to keep the exemption in good standing.

DC exemption is conditional. Unrelated business income remains taxable. A semipublic institution that starts using exempt personal property to generate unrelated business income loses the personal property exemption on those assets. And if the IRS revokes your federal exempt status, your DC exemption does not survive it.

1
Office of Tax and Revenue. Exemptions – Audit Division
2
Office of Tax and Revenue. District of Columbia Application for Exemption, FR-164
3
D.C. Law Library. District of Columbia Code 47-1802.01 – Exempt Organizations – In General