On September 20, 2011, the District of Columbia Council agreed to raise the income tax rate on all households in the District earning $350,000 or more per year to 8.95% from 8.5%.  The rate increase shall be effective as of October 1, 2011, the beginning of the District’s 2012 fiscal year.  According to the District’s Office of the Chief Financial Officer, the tax increase affects about 6,000 residents of the District and is projected to increase the District’s tax revenue by $106 million over the next four years.  The Council also approved a measure to eliminate the retroactive application of income tax on interest earned from out of state municipal bonds; opting, instead, to tax the interest earned on out of state municipal bonds beginning with bonds purchased on or after January 1, 2012.