Committee of the Whole Hearing on Society for Science Tax Exemption and Combined Reporting Amendment Act - September 16, 2026

Chair Phil Mendelson presided over a public hearing on two bills: Bill 26-94, the Society for Science Real Property Tax Exemption Amendment Act of 2025, and Bill 26-708, the Combined Reporting Amendment Act of 2026. The hearing began at 2:19 PM in Room 412 of the John A. Wilson Building. Seven witnesses testified on the first bill and six on the second, followed by government testimony. The record will remain open until 5:00 PM on September 30, 2026.

Society for Science Real Property Tax Exemption (Bill 26-94)

Public Testimony:

• Maya Ajmera (President and CEO, Society for Science) testified in support. She described the organization's 104-year history and its new 96,000-square-foot headquarters at 1776 Massachusetts Avenue NW, acquired in 2024. The building is envisioned as a community asset including a STEM research hub (partnering with Kid Museum), a 300-seat convening center, and a multimedia newsroom. She stated a goal of serving 25,000 DC students and educators annually and noted that 95% of elementary school students served reported joy in STEM. She argued that the tax exemption would allow more resources for programming rather than property taxes.
• Tara Walker (DC science educator) testified in support, sharing personal experiences with Society programs and emphasizing the need for sustained STEM opportunities for underserved students.
• Eric Brooks (Ward 6 resident, alumnus of the Science Talent Search) testified in support, describing his transformative week as a finalist in 2010 and how the experience shaped his career.
• Michelle Hackman (Ward 1 resident, alumnus) testified in support, highlighting the importance of public access to science and the Society's role in connecting students to research.

Discussion: Chair Mendelson noted that the CFO's tax abatement financial analysis (TAFA) concluded the exemption was unnecessary, assuming immediate rental income from three floors and citing healthy unrestricted reserves. Ajmera countered that rental projections were unrealistic given current market conditions, that multi-year grants are booked as immediate revenue but paid out over time, and that the $20 million reserve is for emergencies only. She committed to providing supplemental financial details. The chair asked for clarification on the properties covered: the bill originally included three parcels (1719 N St, 1723 N St, 808 8th St) but only the N Street properties have been sold; the Society now owns only 1776 Massachusetts Avenue, and the exemption is sought for that property, though the bill text does not reflect it.

Combined Reporting Amendment Act (Bill 26-708)

Public Testimony:

• Robert Branham (DC Federation of Civic Associations) testified in support, arguing that the Finnegan method would fairly allocate tax burden from multi-state corporations.
• Alan Pasetsky (Global Business Alliance) testified with concerns. He supported the transition to Finnegan but opposed two provisions in Section 5 of the bill (based on the MTC model) that go beyond apportionment: (1) changing "effectively connected income" to "U.S. source income" for foreign entities, and (2) removing treaty-protected income exemption for the 20% intangible income test. He argued these would lead to double taxation, override federal treaties, and make DC an outlier, urging the council to revert to existing DC language.
• Patricia Stamper (DC resident, educator, entrepreneur) testified in support, but asked for transparency: how much revenue would be gained, which corporations are affected, how enforcement works, and how success will be measured.
• Kelsey Johnson (Global Business Alliance – VP of State Affairs) testified in support of the Finnegan change.
• Michael Masarov (former CBPP tax analyst) testified in support, stating Finnegan is the correct method and that the MTC model is well-considered. He argued the two provisions do not create double taxation and are needed to prevent profit shifting.
• Professor Shensky (tax law expert) testified in support of retaining the MTC provisions as sound base-broadening measures.

Government Testimony: Aisha Hashmi (Corporate Tax Counsel, Office of the Chief Financial Officer) explained the existing Joyce method and the transition to Finnegan enacted in 2024. She stated that Bill 26-708 is necessary to implement the transition with conforming and technical amendments. She recommended delaying the applicability date to tax years beginning after December 31, 2026, because there is insufficient time to implement for 2026. She defended the two disputed provisions as deliberate and consistent with practices in New York, New Jersey, and California, noting that federal tax treaties do not automatically bind state income tax systems.

Discussion: Chair Mendelson explored the two challenged provisions. Pasetsky identified them as Section 4 and Section 5 language that removes treaty protection and expands the base beyond effectively connected income. Hashmi argued these provisions broaden the tax base and are not inadvertent. Masarov and Shensky supported the provisions as tools to prevent income shifting, while Pasetsky countered that DC already has robust add-back and anti-abuse rules. The chair noted the need for additional analysis and requested supplemental submissions from all parties.

Key Outcomes

• The record will close on Wednesday, September 30, 2026, at 5:00 PM. All parties may submit supplemental testimony.
• Society for Science to provide detailed financial responses to the TAFA analysis.
• For Bill 26-708, the OCFO will provide a fiscal impact assessment of delaying applicability to 2027. Chair Mendelson indicated a possible mark-up in October and final action by December.
• Chair encouraged stakeholders to submit written arguments on the two disputed provisions to inform potential amendments.